Tax Evasion: All You Need to Know

What is Tax Evasion?

Tax Evasion is a nature of fraud in which the perpetrator conducts illegal, unlawful, fraudulent, and typically clandestine activity in order to avoid the payment of taxes applicable to and expected of the business or commercial operation in question. Tax evasions can be conducted in a variety of methodology, all of which are illegal and punishable by the fullest extent of applicable laws.

Types of Tax Evasion

Falsification of Documentation: The purposeful misrepresentation of records illustrating inventory in order to substantiate and conceal the fraud in question.

Misrepresentation: The purposeful act of misrepresenting the status of finances, income, or expenses in order to evade the payment of taxes.

Embezzlement: Fraud conducted from a place, reputation, and a standing of trust.

Money Laundering: Money Laundering is the purposeful concealment, misrepresentation, and masking of details with regard to financial income or revenue with regard to a business or commercial endeavor.

Offshore Accounts: Financial deposits of laundered monies into bank accounts existing in other countries or nations.

Tax Evasion Offense Profile

Legal Jurisdiction: Criminal Law, Tax Law, Financial Law, Commercial Law, Consumer Law, Fraud Law

Type of Crime: Typically a Felony – varies upon the nature of the crime

Criminal Code: Varies upon the location of the crime, including the applicable country, nation, state, or province

Range of Punishment(s): Fines, probation, associated penalties, or incarceration – varies upon case details

Applicable Punishment(s): Varies upon individual intent, criminal record, criminal history, and the victim(s) involved. Tax evasion cases are handled by the Internal Revenue Service (IRS), which is the governmental body in charge of monitoring, maintenance, and reporting of taxation that takes place within the United States.

Tax Evasion Allegations: Terminology and Associated Offenses

The following are commonly associated with charges of Tax Evasion:

Financial Fraud: The act of purposefully defrauding individuals by misrepresenting the return(s), conditions, and statuses of investment opportunities. Financial fraud can also include the defrauding of Government programs, such as welfare fraud, unemployment fraud, and insurance fraud.

‘Dummy’ Corporation: A ‘Dummy’ Corporation maintains the façade of a legitimate business, complete with reports of income, revenue, and spending.

Investment Fraud: The act of investing in a business or commercial endeavor whose production, revenue, or solvency is difficult to trace with the hopes of tax evasion or the illegal avoidance of tax payment.

The Preparation of a Tax Evasion Defense

Individuals are encouraged to consult with attorneys specializing in criminal law and, if possible, those who focus on Tax Evasion legality, criminal law, and tax law. In the construction of a defense, the individual may be asked to provide the nature of the events surrounding the Tax Evasion charge in question, the gross monetary value of taxes evaded, financial history, any previous arrests and/or convictions, evidence and witness testimony, full account of the details surrounding the event in question, and the arrangement for bail or bond.

Reporting a Tax Evasion Offense

In the event that an individual has been made aware of an ongoing Tax Evasion, or has been party to a Tax Evasion that has occurred in the past, they are encouraged to contact their local authorities or law enforcement department in order to report the details of the offense. In the event that an individual wishes to do so in an anonymous fashion, they have to opportunity to contact the appropriate Government department, such as the National Crime Prevention Council through their telephone number: (202) 466-6272.

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