Tax fraud or tax evasion refers to the intentional and illegal act of deceiving tax authorities to avoid paying taxes or to claim refunds or credits that are not legitimate. It can take many forms including:
- Misrepresenting income or expenses
- Hiding or transferring assets
- Falsifying tax returns
- Claiming false deductions or credits
It is important to note that tax fraud is different from tax errors or negligence, which can be resolved through amendments and payments.
Tax evasion is also different from tax avoidance, which is the legal use of available tax planning strategies to minimize tax liability.
If you have any questions or concerns about tax compliance, it's best to consult a tax professional or seek guidance from a trusted financial consultant.
Penalty:
- Tax fraud is a serious offence and can result in severe penalties, including:
- Financial fines and penalties – 200 penalty units or twice the amount used or recovered for the fraud.
- Criminal prosecution and imprisonment - not less than 2 years and not more than 4 years
- Reputation damage
- Legal action by tax authorities – may face a fine or legal prosecution.
