By Annie What is tax fraud? What do you mean by terms of tax fraud, tax evasion, and tax avoidance? In these cases the tax law is different and even sometimes they are led to think that they refer to the same type of conduct. Deferring tax revenue means committing a crime that violates current tax law. All citizens are required to pay taxes to feed public resources and allow the state to allocate money to useful works for the community. So when this does not happen that is when the citizen distracts the money, it causes real damage to the Treasury. It becomes the effective definition of tax fraud. How is the crime of tax fraud implemented? Evading income tax or value added through false invoices or other documents for non-existent transactions, stating fictitious liabilities in one of the annual statement relating to the payment of taxes.
Differences between fiscal fraud, taxation, and tax evasion
Tax fraud is a real crime and identifies the non-compliance with tax obligations through actions aimed at counterfeiting or destroying documents with the specific aim of disengaging from the discipline of public administrations. On the other hand, one is faced with tax avoidance when the taxpayer tries to avoid paying taxes that is they escape the tax obligation even if they do not contravene the tax law. The circumvention is distinguished in turn by tax evasion which instead consists in an illegal concealment of the taxable matter.
Therefore, tax evasion is considered as a case of fraud and definitely is a crime punishable by law. Tax fraud occurs in cases of undeclared modification of financial records or when tax documents are voluntarily forged and destroyed to be able to tell the forgery in the annual tax declaration relating to income tax or value-added tax. In the case of non-invoicing, the boundaries between tax fraud and evasion are reduced.
Conclusion: The psychological element
For the purposes of the configuration of the crime of tax fraud, the psychological element is the specific intention of evasion. The conduct of the agent must be specifically oriented towards the pursuit of the purpose of evasion of income tax or value-added tax. In fact, the submission of an untruthful tax declaration usually sums up the non-payment of the tax or the payment of a minor tax. Tax fraud is a crime of its own that can only be implemented by the person required to present the annual tax return on income tax or added value. The material element of the crime is identified in the specific conduct consisting in having indicated in one of the annual declarations related to income tax or value added of the fictitious passive elements, using invoices or other documents issued for non-existent transactions.