Seventh of the Series. (with Selected Images of Cases Filed and Terminated with Judgment of Courts)
Fraud or No Fraud
In general, fraud is defined as "an intentional misrepresentation of material existing fact made by one person to another with knowledge of its falsity and for the purpose of inducing the other person to act, and upon which the other person relies with resulting injury or damage"
Tax fraud is an intentional violation "legal duty to voluntarily file income tax returns and/or pay the accurate amount of income, employment and excise taxes that you owe." The following acts are held to be constituting tax fraud, i.e. "claiming false deductions, concealing or transferring assets or income, knowingly changing your income, over reporting the amount of deductions, possessing two set of books, recording personal expenses as business expenses, and using false amounts in books and records." Tax evasion is tax fraud. It is a felony/crime. Illegal means are employed so that one will not have to pay taxes at all.
When taxes are not paid properly; the economy suffers and we all suffer. The economy and the society is overburdened with deficits and debts to be discharged. These deficits translate to tighter government spending and consequently would mean lesser social ameliorating programs for the poor. In other words, we carry the burden of those who evade payment of taxes and since it has deleterious effects on the economy; it is considered a felony/crime. Upon proof during trial, harsh penalties are meted including incarceration because of the fraud attendant to its commission.
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