Tax evasion

A combined efforts of international and domestic tax investigators examining ice cream parlour have proven that manipulations with zapper were carried out since December 2003, which led to a significant reduction of actual sales.

A manipulation program used for this reduction is a game module found in the POS system made by AriadneNT, activated using USB-stick was a password-based file called “Asteroids.exe” (the password was later uncovered by the state police).

Tax loss = €2.69 million

To learn more about this case visit HERE

SPANISH Tax Agency (AEAT) has launched a crusade against zappers, which allow taxpayers to easily hide accounting records.

In December 2014, a special task force with AEAT technicians uncovered the complex fraudulent practices in a chain of Italian restaurants. 70 officials from 8 regional offices, along with police officers simultaneously stormed 15 sites where chain operated throughout Spain. Such organised action was necessary to prevent POS software operators to erase tax records and thus destroy tax evasion evidence.

The action uncovered a sophisticated system designed to fictitiously reduce revenue from restaurants through a software application that produces double set of books. The operation “Pasta Fresca” (Fresh Pasta) allowed AEAT to break into system matrix installed by the order of Italian franchise owned corporation. The name of the restaurants is not disclosed due to ongoing investigation.

Associated press reports: U.S. Rep. Michael Grimm admitted Tuesday to federal tax evasion, pleading guilty to charges he had fought as he won re-election last fall but that now leave his congressional future in question.

Grimm entered a guilty plea to one count of aiding in the filing of a false tax return. He had been set to go to trial in February on charges of evading taxes by hiding more than $1 million in sales and wages while running a Manhattan health-food restaurant.

On the 04/12/2014 meting, the Slovenian government adopted decision related to the amendment of measures against grey economy. One of the conclusions was to introduce from 1st September 2015 the “real cash registers”. Last year, Slovenian previous government, has implemented “virtual cash registers”. Every cash register owner should have a program that prevents the deletion or change of invoices. But taxpayers was given the option of choice whether to use cash register or manual invoices. Although the tax revenue is increased by “virtual cash register” implementation, it was observed that many taxpayers have replaced their cash registers with manual invoicing booklets!!

Miyuki Sushi Bar inc. owner Thahn Long Pham is being fined $50,000 on Nov. 17, 2014.

The restaurant was audited after Revenue Québec obtained a search warrant and seized records in Dec. 2009 and discovered irregularities.

Thahn was accused of using a sales suppression device to alter the records in the cash register and therefore the amounts of QST and GST due…

Earlier in 2013, the founder of Happy’s Pizza, a Michigan-based restaurant that has locations in California, Indiana, Ohio, Texas and other parts of the country, has been indicted on charges of tax evasion, federal conspiracy and fraud. At that time a spokesperson from Happy’s Pizza said that the company plans to fully cooperate with authorities during the ongoing investigation. The Farmington Hills-based pizza company says it has 100 locations in Michigan and other states.

Just recently Happy Asker was convicted of a multimillion dollar tax fraud scheme, according to the Department of Justice. Asker is the president, founder and public face of the Farmington Hills-based pizza franchise.

Evidence admitted at trial showed that from 2008 to 2010, more than $6.1 million in cash gross receipts were diverted from approximately 35 Happy’s Pizza stores in the Detroit area, Illinois and Ohio, according to the press release…

“If left unchallenged, the underground economy will erode the integrity of Canada’s tax system” The Honourable Kerry Lynne D. Findlay, Minister of National Revenue Canada, is showing her government’s determination to fight tax evasion at the latest UE strategy meeting.

Underground economy includes both unreported and under-reported sales or income, which may involve:
failure to file or register;
failure to report a business activity;
failure to report part of a business activity or income; or
failure to report employment income.

Electronic Suppression of Sales (ESS) software (commonly known as zapper software) has been used by some businesses to hide their sales…

The Canada Revenue Agency (CRA) announced on September 30th 2014, that Jezz Shi-Cheng Huang, of Calgary, Alberta, pleaded guilty in Provincial Court to tax evasion and failing to remit goods and services tax (GST) for his company 1320530 Alberta Ltd, operating as Edgemont City Asian Cuisine. The court imposed a total fine of $89,753 for both the income tax and GST offences…