Common Tax Mistakes That Could Be Considered Fraud

When handling your financial affairs it is important to avoid making serious miscalculations wherever possible. Whether you’re working out how much tax your business owes, or you’re calculating your total personal income, having the right details and documentation in place is essential when it comes to avoiding potentially criminal errors.

Tax evasion or tax fraud is a serious offence, where you may be charged with criminal activity if your errors are proved to be intentional. As such, lots of businesses and individuals seek the support of a qualified accountant to ensure that everything is in order, helping to reduce the likelihood of major discrepancies.

Read on to find out more about some of the most common tax mistakes that could be considered fraudulent under the law.



Failing to Report Income

It can be easy to under-report your income if you’re unsure what financial streams qualify for taxation. For instance, side businesses, freelance projects and cash payments should all be reported, where a suspiciously low total income could raise suspicions and lead to an in-depth investigation into your finances.

False Documentation

All documents that you submit need to be legitimate and unaltered. There might be a legitimate reason why your documents appear to have been altered, but this can be viewed as an attempt at fraud. As such, it is important to submit all the right documents without altering any details.

Missed Tax Returns

Tax returns need to be submitted to the relevant authorities so that the amount of tax you owe can be calculated. Importantly, you should bear in mind that if you forget to do this or if you miss a deadline, it will seem like you’re attempting to avoid payment. To prevent this, ensure that you fully comprehend when this paperwork is due.

Concealed Assets

Hiding or appearing to hide assets can also be construed as a fraudulent offence. For instance, keeping monetary sums in a secret account or completing discrete cash payments can ring alarm bells in terms of criminal activity. You should therefore disclose all your assets when it comes to submitting taxation forms.

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