The tax bureau announced that a business couple (in their 60s) who ran a printing company were prosecuted by the tax bureau for being accused of underreporting or underreporting their turnover for many years. After trial, they were found guilty of deliberately intending to evade tax and were sentenced to 24 months and 12 months in prison respectively, with a total fine of 1.18 million dollars. The 24-month prison sentence in this judgment is quite serious; but the fine is only 1.18 million, which is a relatively small number.
The issues in this case are analyzed as follows:
1. The merchant used the bank account of another inactive company to collect the payment, and only transferred part of the payment back to the operating company's account, and modified the invoice to match the amount recovered by the company. This case involves forged documents, which is a serious crime. It is not as simple as simple tax evasion; 2. If you think that payment is collected through a third-party account, you will under-report business income. In fact, it is easy to detect. This is deliberate tax evasion and the crime is very serious; 3. When the tax bureau launched an investigation, the two still denied the relevant charges, resulting in aggravated sentences. In fact, when you encounter an investigation by the tax bureau, you should seek assistance from appropriate professionals and respond appropriately to reduce the penalty; 4. The tax bureau may not be aware of the tax evasion immediately. Many people think it is a easy to hide and do it again and again. But when the tax bureau investigates, it is easy to find out.
There are many ways to save taxes, but you must abide by the following tax-saving tips:
1. Doing business is long-term, and you must file taxes in a legal and reasonable way; 2. Recognize that paying taxes is the responsibility of citizens and they must pay appropriate taxes; 3. Find a qualified accountant to assist with tax filing; 4. Find an accountant who truly wants to help you and be your long-term partner.
Our company is a licensed accounting firm in Hong Kong with more than 30 years of experience in handling various tax matters. Our aim is to "grow together with our customers and share results".
If you have any tax issues, please feel free to contact our company.
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