TAX FRAUD

Free competition: how tax evasion and tax competition distort markets – the Brazilian perspective

ABSTRACT The article discusses how tax evasion and tax competition jeopardise free competition between companies. Focusing on the Brazilian experience, it shows that the country is not a major player in international tax competition, but that there is a ferocious tax war between Brazilian States and Municipalities. The article describes the two main examples of this internal tax competition and presents some of the...

Zappers & Phantom-Ware: A Global Demand For Tax Fraud Technology

There is a demand-market for technology that facilitates tax fraud. By all accounts the providers in this market are working in a growth industry. In the short term this is bad news for those concerned with tax policy[1] and information privacy.[2] In the long term however, the fight against technology-assisted fraud is stimulating the development of a more robust technology base within tax administrations, and...

Quebec’s Module D’enregistrement Des Ventes (MEV): Fighting The Zapper, Phantomware And Tax Fraud With Technology

On January 28, 2008 the Quebec Minister of Revenue, Jean-Marc Fournier, announced[1] that by late 2009 the MRQ will begin testing a device, the module d'enregistrement des ventes (MEV)[2] that is projected to substantially reduce tax fraud in the restaurant sector. By 2010 or 2011 MEVs will be mandatory in all Quebec restaurants, where they will assure accuracy and retention of business records within electronic cash...

Zappers: Tax Fraud, Technology And Terrorist Funding

“Zappers,[1]” or automated sales suppression devices, have brought unheard of efficiencies and economies of scale to a very simple tax fraud - skimming the cash sales that pass through point of sale (POS) systems, network connected electronic cash registers (ECRs). Until recently “the largest criminal tax case in the history of Connecticut,”[2] which also was the “largest computer driven tax-evasion case in...

Electronic Tax Fraud – Are There “Sales Zappers” In Japan?

Skimming cash receipts is an old fashioned tax fraud; a fraud traditionally associated with small or medium sized enterprises. Large businesses with formalized internal control mechanisms, external accountants, and professional management structures do not normally engaged in skimming.[1] Businesses that skim frequently keep two sets of books (one for the tax man, the other for the owner). In its simplest form there are...

Tax Fraud in The Sales Tax: Zappers – What Are They? How Can Puerto Rico Block Them?

The Sales and Use Tax is an essential part of Puerto Rico's revenue profile. Effective only recently (November 15, 2006) the Impuesto a las Ventas y Uso (IVU)[1] was expected to raise between $2.3 and $1.05 billion annually,[2] and has already become the Commonwealth's fourth largest revenue source.[3] Actual revenue results for 2007-2008 came in at $1.1 billion,[4] which admittedly is closer to the low end than the high...
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