tax fraud tagged posts

Possible Charity Fraud Uncovered in New Zealand

June 15, 2017 Taxation in New Zealand

Tax CrimeWELLINGTON – Investigations by New Zealand officials may have unveiled a multi-million dollar tax fraud scheme using charities.

The Department of Internal Affairs of New Zealand has released a report, following an official information request, showing that local charities may be being used for international tax evasion or money laundering.

The report centres around Operation Timepiece, an investigation conducted by the Department of Internal Affairs on three entities registered in New Zealand as charities.

The three entities have made some donations in New Zealand, but, according to records, funnel the majority of their funds into a single entity registered in Switzerland.

The three entities have now been de-registered, but the professionals behind their organisation and operations claim ...

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Canada and UK Shut Down Carousel Scheme

June 15, 2017 Taxation in Canada

Carousel CanadaONTARIO – Tax investigators hope they have put an end to a CAD 50 million carousel scheme reaching from the UK to Canada.

The tax authorities of Canada and the UK have revealed that this week they carried out simultaneous raids on addresses associated with large-scale tax fraud across the two countries.

Accusations of fraud revolve around an alleged CAD 52 million in false tax refunds obtained by a group of 11 people based in the UK.

The fraud is understood to be a “carousel scheme”, which has become common in the EU and UK, but is still relatively rare.

The scheme involves a series of businesses, which purchase goods from each other, with some businesses in the chain claiming refunds on the GST paid on goods, without ever paying any GST themselves.

Often the goods are passed continual...

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Poland Eyes Detection System for Tax Cheating

March 23, 2017 Taxation in Poland

Tax collections in PolandWARSAW – Poland hopes to catch out tax cheats by automatically monitoring bank transactions for high risk deals.

The Finance Ministry of Poland has announced that it will soon establish an electronic verification system using bank data to catch out VAT fraud.

The new system is meant to catch out tax cheats who issue fake invoices in order to claim unwarranted tax VAT rebates.

The system will work by conducting risk analysis of transaction going through the national finance sector.

If initiated, the new system could be functional as early as June this year.

In the first year of operations, the tax system could help recover 10 percent to 15 percent of the fake tax claims.

Based on the estimated recovery rate, the government of Poland could see tax revenues rise by as much as PLN 600 mil...

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IRS Can’t Stop Tax Fraud by Prisoners

November 26, 2014 Taxation in USA

Tax fraud in the USAWASHINGTON D.C. – The IRS’s inactivity regarding tax fraud committed by prisoners has resulted in a drastic spike in the number of attempts by prisoners to commit tax fraud.

Over the course of 2012 prisoners in the USA and their accomplices attempted to perpetrate ate least USD 1 billion worth of tax fraud, according to new information released on November 25th by the US Treasury Inspector General for Tax Administration (TIGTA).

When the TIGTA first began to maintain records of the occurrences of tax fraud committed using the social security number of a prisoner in 2010, there were an estimated 37 000 such instances per year, with a total value of USD 166 million, however, in the 2012 financial year, the numbers have risen to 137 000 and USD 1 billion respectively.

The experts of TIGTA c...

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