Types of Tax Offense

Avoiding paying taxes, by taking recourse to legal means is not a legal offense. But willful evasion of tax that’s payment is considered mandatory through subterfuge or deceit, constitute tax offense.

There are many types of tax offenses. Willfully avoiding income tax payments by not filing returns or concocting statements is one type. Showing personal expenses as business expenditures; creation of cheat funds; and tax evasions by cooking up books of accounts in business are serious tax offenses.tax crime

Maintaining two sets of books, making duplicate invoices, willfully making erroneous entries, transacting in cash, embezzlement, money laundering, destroying records, transferring assets in another’s name, and covering up assets with an intention to mislead are tax offenses as well.

Failure to pay taxes that affirmatively proves willful evasion constitute any or all of the following types-hiding assets, filing returns late, diverting and siphoning off corporate assets, and filing bogus tax statements. Retail stores, resorting to ways, to avoid paying sales taxes commit tax offenses.


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