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…
Read More›The BOE has seen a recent increase in the number of business owners using sales suppression or sales-hiding software to evade the payment of taxes due to the state.
Sales suppression software erases sales transactions which enables users to avoid paying income tax, sales tax, and other point of-sale (POS) fees collected on retail sales. Using such technology to deliberately falsify records for the purpose of evading taxes properly due is a crime and punishable by law.
Source: Tax information bulletin, Publication 388 as of September 2014 – www.boe.ca.gov
The Austrian Financial Secretary Sonja Steßl makes a proposal: She wants to start a receipt lottery to combat fraud in catering establishments. Many restaurant owners do not report their revenues; with a cash register receipt and obligation she wants to change that. The additional lottery is intended to attract the customers for these measures.
The Ministry of Finance estimates that the hospitality industry evade every year between 500 million and 1 billion euros in sales tax…
Read More›A case that makes you think about all of those businesses making their fortune quicker then any competitor in their industry. And why would they stop!?
Original article:
Two businessmen who own or collect license fees from about 20 Italian Village Pizza stores in Western Pennsylvania admitted in federal court Wednesday that they systematically underreported their sales to the Internal Revenue Service and encouraged their franchise holders to do the same…
“We are taking a closer look at the cafe, restaurant, catering and takeaway industry because about 40,000 businesses in the industry [nationwide] lodge late,” ATO senior assistant commissioner Michael Hardy.
“The ATO has been able to use the data from contractor reporting in the building industry to identify those businesses in the building trades that don’t have any involvement in sub-contracting, and so are mostly operating in the business-to-consumer end of the market,” Mr Hardy said. “Omitted income is more prevalent in the business-to-consumer end of the market so this information lets us sub-divide the market more carefully.”
The tax authority has been tracking the credit card transactions of almost 1 million businesses. The 275,000 businesses that were targeted were flagged as part of the Tax Office’s wider data-matching program.
Read more about “ATO deploys computers to catch cash economy cheats”: click here
BOE: “You can help us fight illegal sales suppression by asking for a receipt when you purchase food, beverages, or other merchandise, especially when you pay with cash. This discourages dishonest businesses from removing or changing sales in their electronic records and helps the BOE identify those businesses who illegally suppress sales.”
BOE documented over 60 cases of zapper activity in California. They are taking this seriously, to find out more click on the “read more” button
Read more: http://www.boe.ca.gov/news/2014/l386.pdf
After extensive research on the subject, Professor Richard T. Ainsworth managed to bring zappers and phantom-ware to the attention of the OECD. The group formed action team to deal with specifics and came out with several recommendations. See paper on Electronic Sales Suppression.
To be updated…
Dutch news.nl reports: The men are suspected of defrauding the tax office out of at least €1.5m through false accounting. Tax inspectors stumbled across the fraud after finding irregularities in the book-keeping of one Super de Boer franchise holder and extended their investigation to other branches.
Cash receipts hidden from accounting served as utility to bring large sums of extra income to owners of Nifty Fifty’s fast food chain. PhillyBurbs reports: “Owners plead guilty”.
Twenty-two restaurants in the UK are currently being considered for criminal prosecution after HM Revenue & Customs (HMRC) issued a crackdown on tax dodgers.