What are the different types of tax evasion?
For every form of taxation, there is a method for tax evasion. The tax evasion cases that make the papers typically involve wealthy individuals who have attempted to shirk income taxes. However, tax evasion also occurs in the transfer of money through trusts as well as in commerce. The latter includes crooked dealings in general business practices, employment, and retail sales. Individuals evade incomes taxes in several ways. Some fail to file a return or make false declarations on a return, such as exaggerated or fake deductions and unreported income. People have been known to claim a second address as their filing address to avoid paying a certain state’s taxes. Finally, many corporate executives have been known to write off personal expenditures as business expenses in order to avoid paying personal income tax on them. Abusive trust schemes contend to transfer money into another’s possession, but do not actually do it. Elaborate ladder systems are created in which one transfer after
