Do you know a variety of tax frauds exist? Yes, they do, and if you are not careful enough then you can become a victim to a tax fraud that can land you in prison for a good 4-6 years. Scary right?
Well, if you want to avoid tax fraud and any other problem related to your tax returns, you must always read all your files and tax return forms before signing them because if you sign a form with inaccurate or incorrect information, you might end up in trouble.
Don’t Be Willfully Blind
If you trust your tax consultant or the company that helps you prepare your tax returns, always make sure you read your form, because previously companies have been known to report non-existential losses for nonexistent companies to help their clients avoid taxes or get a refund. If such a transaction is considered fraudulent it can lead to imprisonment.
A tax firm named Fiscal Arbitrators run by Larry Watts was involved in committing tax frauds for different companies. The court found the company guilty of fraud in 2016 and gave them a penalty of $150,000. One of the taxpayers had signed their tax preparation form without reading it and was also punished with 6 years in prison. Although in his defense he told the court that he hadn’t read the form properly and therefore never knew the information given was inaccurate. To this, the judge said it was his fault and he should not have turned a willfully blind eye to such sensitive matters.
Even if you are an expat and are hiring an expat tax consultant UK, you need to be very careful while signing your form because you never know what wrong information your firm may have added to it.
Don’t Trust Tax Professionals Guarantying Refunds
When a company promises something too good, you should know that there is something wrong in the form that you don’t know. Because the governments are more than clever to leave any loopholes in the taxing system. Such companies often file inaccurate filings of refunds in your tax forms and this is illegal.
The tax season is the hottest time of the year for such companies to earn some money in a short time and this is why they advertise guaranteed refunds to attract people. And they do deliver but mostly with tax fraud.
Your Tax Form Gives You An Overall Picture of Your Business Performance
If you’re wondering how your company is doing financially then your tax form is one of the most accurate and best ways to analyze your company’s financial situation. Your tax form has all the records of your cash flows which includes your credit and debit.
Your tax is generated on the basis of the amount of money you have earned in a year. Though financial statements are a great way to analyze monthly performance, you can actually calculate your profits after you have deducted the taxes from your overall earnings. So a tax form gives you a clear picture.