Tax Fraud

Tax fraud is the deliberate act of intentionally deceiving tax authorities for personal or financial gain by concealing or misrepresenting information related to one’s income, deductions, or other financial transactions. It involves the intentional evasion or manipulation of tax obligations to lower the amount of tax owed or to secure excessive refunds. Tax fraud can take various forms, such as underreporting income, inflating deductions, creating fictitious expenses or entities, using false documents, or engaging in offshore tax evasion schemes.

Tax fraud undermines the integrity of the tax system and imposes significant costs on governments and honest taxpayers. It not only deprives government revenue, causing funding gaps for essential public services, but also distorts the fair distribution of the tax burden among different individuals and businesses. Authorities employ various measures to detect and combat tax fraud, including audits, data matching techniques, sophisticated technology, information sharing agreements, and penalties for offenders.