Tax Evasion Schemes Research Articles

Decentralized Finance on the Ethereum Blockchain

Decentralized finance can be an option of last resort for refugees escaping political and societal collapse. This option can safely store a person’s wealth in a way that accumulates interest while preventing governments and banks from seizing it. In addition, there are other applications available for stabilizing financial holdings, trading, borrowing, speculating, and hedging. Using these applications, attorneys could advise desperate clients on using decentralized financial strategies to circumvent the authority of dysfunctional governments and insolvent banks. These applications are not without their perils, needing smart regulation that allows for attorneys to make good-faith efforts to help clients, while preventing criminal money-laundering and tax-evasion schemes. With carefully crafted regulation, a new field of law could open up to U.S.-based attorneys. This field of law has the potential to provide hours of lucrative legal work helping clients maintain their savings.

Основные схемы уклонения от исполнения налоговых обязательств, используемые в мировой практике

Th is article is devoted towards the main tax evasion schemes used in international practice. In particular schemes evading customs payments, VAT, income tax and social transfers. Also the particulars of justifi ed and unjustified tax benefi ts are mentioned.

Detection of concealed cars in complex cargo X-ray imagery using Deep Learning

Non-intrusive inspection systems based on X-ray radiography techniques are routinely used at transport hubs to ensure the conformity of cargo content with the supplied shipping manifest. As trade volumes increase and regulations become more stringent, manual inspection by trained operators is less and less viable due to low throughput. Machine vision techniques can assist operators in their task by automating parts of the inspection workflow. Since cars are routinely involved in trafficking, export fraud, and tax evasion schemes, they represent an attractive target for automated detection and flagging for subsequent inspection by operators. Development and evaluation of a novel method for the automated detection of cars in complex X-ray cargo imagery. X-ray cargo images from a stream-of-commerce dataset were classified using a window-based scheme. The limited number of car images was addressed by using an oversampling scheme. Different Convolutional Neural Network (CNN) architectures were compared with well-established bag of words approaches. In addition, robustness to concealment was evaluated by projection of objects into car images. CNN approaches outperformed all other methods evaluated, achieving 100% car image classification rate for a false positive rate of 1-in-454. Cars that were partially or completely obscured by other goods, a modus operandi frequently adopted by criminals, were correctly detected. We believe that this level of performance suggests that the method is suitable for deployment in the field. It is expected that the generic object detection workflow described can be extended to other object classes given the availability of suitable training data.

Understanding the carousel tax scheme in the EU and Lithuania jurisprudence

Value added tax is one of the most important sources of all EU member states government revenue, but the its role in Lithuania is even greater. Therefore evasion schemes is real threat to state budget and provision of public services. Therefore the regulation of VAT deduction system is very sensitive. But too strict regulation on abuse of VAT tax may hinder honest tax payers and eventually bring greater loss to economics, since tax payers must enjoy a degree of legal certainty, especially in the case of tax consequences. Deduction system in VAT tax is meant to relieve the trader entirely of the burden of the VAT payable or paid in the course of all his economic activities, since this is meant to ensure complete neutrality of taxation of all economic activities. Though it is clear that principle of prohibiting abusive practices also applies to the sphere of VAT. Since different forms of escaping tax obligations result in tax fraud, evasion or avoidance, fight against these abuses is a mix of national and EU actions. Courts held view that principle of abuse of rights is a general principle of Community law and prevents a taxable person from deducting VAT, where it is apparent from the application for deduction that the objectives of VAT, are not being attained and that the taxable person is artificially creating conditions to justify the application for deduction. But the most problematic issue is to qualify specific situation as abuse of rights. Some tax evasion schemes are clearly recognized as illegal in ECJ decisions and jurisprudence. But still some qualification of situations where VAT is unpaid because of insolvency caused by natural economic factors and not by intentional human will is still unclear. In article it is presented Lithuanian administrative court position that when person deals with partially insolvent partner and may foresee that he would not be able in full to pay his VAT duties, it is held that such transactions are abuse of right denying the right to deduct. Author does not agree with this view, bringing arguments and contesting that the criteria of abuse should be intention of transaction and reality of business operation, but not the knowledge of solvency of business partner in itself. There is not exactly case solved by ECJ regarding this matter, though in general court considers abuse of right only there where tax payer acted not in bona fide transactions-i.e. such transactions which are designed fundamentally to obtain a tax advantage and are of purely artificial nature.

Evaluation of Digital Shadow Economy Prevention Measures

Abstract Although during the past few years the scopes of shadow economy in Lithuania have slightly decreased, different forms of this phenomenon, in particular digital shadow activities, still generate a significant part of the overall value added. As no constant estimations of the scope of digital shadow economy have been made in Lithuania, alleviation of this problem is based on consequence fighting rather than reason elimination. Digital shadow economy poses a significant challenge for law enforcement agencies concerning its investigation and prevention. Hence, it is purposeful to research both theoretical and practical aspects of digital shadow economy prevention in order to identify the measures that could be used for the efficient reduction of the scope of this phenomenon. The aim of this research is to identify the measures of digital shadow economy prevention and compare the attitudes of governmental institutions and consumers towards the efficiency of these measures. The results of the empirical research showed that both consumers and experts agree that the level of tax morale has to be raised not only by using the measures of self-education but also by introducing long-term educational programmes; second, public authorities should ensure business friendly environment, actively implement the principles of justice and officially acknowledge and announce the concept of digital shadow economy; finally, for more efficient detection of the cases of digital shadow activities, it is necessary to reinforce current labour resources that should be specially trained to be able to disclose revenue hiding and tax evasion schemes, employed in e-trade.

Characterization of diesel fuel by chemical separation combined with capillary gas chromatography (GC) isotope ratio mass spectrometry (IRMS)

The purpose of this study was to perform a preliminary investigation of compound-specific isotope analysis (CSIA) of diesel fuels to evaluate whether the technique could distinguish diesel samples from different sources/locations. The ability to differentiate or correlate diesel samples could be valuable for discovering fuel tax evasion schemes or for environmental forensic studies. Two urea adduction-based techniques were used to isolate the n-alkanes from the fuel. Both carbon isotope ratio (δ13C) and hydrogen isotope ratio (δD) values for the n-alkanes were then determined by CSIA in each sample. The samples investigated had δ13C values that ranged from −30.1‰ to −26.8‰, whereas δD values ranged from −83‰ to −156‰. Plots of δD versus δ13C with sample n-alkane points connected in order of increasing carbon number gave well-separated clusters with characteristic shapes for each sample. Principal components analysis (PCA) with δ13C, δD, or combined δ13C and δD data was applied to extract the maximum information content. PCA scores plots could clearly differentiate the samples, thereby demonstrating the potential of this approach for distinguishing (e.g., fingerprinting) fuel samples using δ13C and δD values.

Black Cash Tax Evasion in Russia: Its Forms, Incentives and Consequences at Firm Level

This paper discusses Russia's economy. Using interviews and survey data, we examine the mechanics of several distinctly Russian tax evasion schemes and attempt a rough estimate of the scale and dynamics involved in tax evasion based on black cash. Entrepreneurs' opinions are also used to get an idea of the incentives and costs of black cash tax evasion. We next describe the apparent economic consequences of black cash tax evasion and formulate general formal conditions for successful evasion at firm level. Finally, we recommend several policy measures to reduce the incentives to such behaviour and discuss questions for future research.

Part IVA, Partnerships and Dominant Purpose

In the taxation laws of Australia Part IVA of the Income Tax Assessment Act 1936 is the primary means by which the Commissioner punishes tax evasion schemes. The Commissioner has not been hesitant to attack partnerships.1 However, a consideration of the legislation and case law reveals major problems inherent in doing so. This article canvasses the basic problems the Commissioner faces when attacking partnerships under Part IVA, and suggests some simple solutions. It is concluded that Part IVA is the legally incorrect way to attack partnerships as tax evasion schemes.

Les comportements de fraude fiscale. Le face à face contribuables — administration fiscale

Tax evasion differs from other economic crimes owing to the fact that it is committed against a specific agent. This agent, the government, has the characteristic of being in charge, through the tax administration, of both the collection of taxes and the enforcement of measures designed to stamp out evasion. Thus, it has the resources, the power, to fight against this deviance. Therefore, it becomes obligatory to analyse, simultaneously, the behaviour of tax evaders and the mechanisms that are implemented to promote the collection of the amounts due by taxpayers. This justifies that we concentrate on this confrontation between taxpayers and tax administration. Moreover, tax evasion schemes, as they depend upon taxation rules as well as on the risks born by the individual in the case of detection, will then turn out to be evolutionary, implying parallel accommodation of deterrent actions undertaken by tax officials.

'Black Cash' Tax Evasion in Russia: Its Forms, Incentives and Consequences at Firm Level

This paper discusses Russia’s “black cash” economy. Using interviews and survey data, we examine the mechanics of several distinctly Russian tax evasion schemes and attempt a rough estimate of the scale and dynamics involved in tax evasion based on black cash. Entrepreneurs’ opinions are also used to get an idea of the incentives and costs of black cash tax evasion. We next describe the apparent economic consequences of black cash tax evasion and formulate general formal conditions for successful evasion at firm level. Finally, we recommend several policy measures to reduce the incentives to such behavior and discuss questions for future research. (JEL: D21, H26, O17)

Black Cash Tax Evasion in Russia: Its Forms, Incetives and Consequences at Firm Level

This paper discusses Russia's economy.Using interviews and survey data, we examine the mechanics of several distinctly Russian tax evasion schemes and attempt a rough estimate of the scale and dynamics involved in tax evasion based on black cash.Entrepreneurs' opinions are also used to get an idea of the incentives and costs of black cash tax evasion.We next describe the apparent economic consequences of black cash tax evasion and formulate general formal conditions for successful evasion at firm level.Finally, we recommend several policy measures to reduce the incentives to such behaviour and discuss questions for future research. Keywords: tax evasion, informal business activity, cash, Russia.

Revenue Enhancement through Increased Motor Fuel Tax Enforcement

The development of the FHWA fuel tax compliance program is described, and estimates of additional motor fuel tax revenues generated by enforcement programs are presented. Substantial revenue losses caused by motor fuel tax evasion schemes were discovered in the mid-1980s. Since 1986, the Internal Revenue Service and FHWA have worked cooperatively to reduce fuel tax evasion by supporting changes in tax collection procedures and additional enforcement resources. Since fiscal year 1990, FHWA has provided funding to supplement state and IRS fuel tax enforcement resources under the auspices of the Joint Federal/State Motor Fuel Tax Compliance Project (joint project). The Intermodal Surface Transportation Efficiency Act of 1991 provided $5 million annually through 1997 for the joint project. Enforcement activities directly contribute hundreds of millions of dollars to the Highway Trust Fund (HTF) and state transportation funds, a yield estimated at $10 to $18 per dollar spent on these programs. Furthermore, the Omnibus Budget Reconciliation Act of 1993 moved the incidence of the federal excise tax on diesel fuel to the point of removal from bulk storage at the terminal and required tax-exempt diesel fuel to be dyed. The HTF revenue from the diesel fuel tax has increased more than $1 billion in the year since these changes went into effect on January 1, 1994, net of the tax rate increases also enacted in 1993. Some $600 million to $700 million of this increase has been estimated to be the result of improved compliance.

Revenue Enhancement Through Increased Motor Fuel Tax Enforcement

The development of the FHWA fuel tax compliance program is described, and estimates of additional motor fuel tax revenues generated by enforcement programs are presented. Substantial revenue losses caused by motor fuel tax evasion schemes were discovered in the mid-1980s. Since 1986, the Internal Revenue Service and FHWA have worked cooperatively to reduce fuel tax evasion by supporting changes in tax collection procedures and additional enforcement resources. Since fiscal year 1990, FHWA has provided funding to supplement state and IRS fuel tax enforcement resources under the auspices of the Joint Federal/State Motor Fuel Tax Compliance Project (joint project). The Intermodal Surface Transportation Efficiency Act of 1991 provided $5 million annually through 1997 for the joint project. Enforcement activities directly contribute hundreds of millions of dollars to the Highway Trust Fund (HTF) and state transportation funds, a yield estimated at $10 to $18 per dollar spent on these programs. Furthermore, the...