Tax Evasion tagged posts

India Removes High-Value Notes from Circulation

November 9, 2016 Taxation in India

High value notes in IndiaNEW DELHI – India is hoping that removing certain high-value bank notes from circulation will help eradicate tax evasion and funding of terrorism.

At midnight on November the 8th India will drop INR 500 and INR 1 000 banknotes from circulation.

The move to withdraw the large denomination notes from circulation is intended to bring in significant levels of hidden wealth back into the formal economy.

The withdrawal is also aimed at hampering the capabilities of militant groups to fund their activities, and to undermine the capability of small businesses to evade their tax obligations.

It is believed that as much as 40 percent of the national economy of India is comprised of small- and medium-sized businesses which predominantly operate in cash, and, often, without reporting their profits to...

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Tax Evasion Estimated at KRW 55 Trillion Per Year in South Korea

September 20, 2016 Taxation in South Korea

SEOUL – The size of Korea’s underground economy outweighs that similarly sized countries, leading to significant levels of tax evasion.

The results of new research released on September 19th Professor Kim Jong-hee of Chonbuk National University of Korea has shown that the size of the underground economy in South Korea exceeds that of other OECD countries.

It was estimated that on average between 1995 and 2014 the underground economy in South Korea made up 10.89 percent of the national GDP.

In comparison the average size of the underground economy in the other OECD countries was 8.06 percent, while among G7 countries the level was only 6.65 percent.

The prominent underground economy has also resulted in comparatively high levels of tax evasion, with the ratio of tax evasion-to-GDP in South...

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UK Tax Dodgers Fined 200% for Evaded Taxes

August 25, 2016 Taxation in UK

Tax Freedom DayLONDON – The UK Treasury is cracking down on international tax evaders, with newly proposed rules seeing tax dodgers fined for twice the amount of taxes that they originally skipped.

On August 24th the UK Treasury released a consultation paper proposing significantly hiked penalties for tax cheats.

Under the newly proposed rules any taxpayers with undeclared assets, incomes, or interests hidden offshore could face penalties of 100 percent to 200 percent of the taxes owed, unless they come forward and clear up their outstanding obligations by September 2018.

The new penalties will be levied on the basis that the taxpayers has “failed to correct” their tax standing with tax authorities.

Currently the fines levied for hiding assets and incomes overseas can be reduced or even wiped away ...

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UK Eyes Hefty Penalties for tax Evading Advisors

August 17, 2016 Taxation in UK

Tax BillLONDON – Advisers in the UK caught peddling illegal tax evasion schemes may soon be stung with penalties of 100 percent of the taxes they helped evade.

The UK HM Revenue and Customs has issued a new consultation documents proposing significantly harsher penalties for accountants and advisers who help their clients skip out on their tax obligations.

Under current regulations individuals and businesses who are found to have used an illegal scheme to avoid or evade taxes may be charged significant penalties, however, the advisor or accountant who actively promoted the scheme used is not liable for any penalties.

Under the proposed new rules, the offending advisor may be penalized and required to pay a penalty equivalent to the entire amount of taxes dodged.

Explaining the need for the new...

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New Zealand Goes Easier on Tax Cheats Than Welfare Frauds

June 21, 2016 Taxation in New Zealand

UK Taxman Targets Criminal OrganizationsWELLINGTON – Tax evaders in New Zealand cost the economy significantly more than people committing welfare fraud, but they are much less likely to be prosecuted or pay back what they took.

The results of new research completed at the Victoria University in New Zealand shows that tax evaders in the country are much less likely to be prosecuted than people defrauding the welfare system, despite the fact that tax evasion has a much greater cost on the economy.

In most years between 800 and 1 000 people in New Zealand are prosecuted for tax fraud each year, while over the same time only 60 to 80 people are prosecuted for tax evasion.

It is estimated that welfare fraud costs New Zealand approximately NZD 30.6 million per year, while tax evasions sets the country back by NZD 1.24 billion.

On av...

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