Tax Evasion Lawyers
Tax evasion is one of the most serious offenses in the field of financial regulation. Issues related to tax legislation are often very complex and require a qualified approach to resolve them. Our lawyers can provide legal advice on tax evasion cases.
Tax cases can range from simple matters involving an individual filing returns to complex situations that require in-depth analysis and strategic planning. Having qualified legal support can make the process much easier and help minimize the consequences, which makes it important to choose the right attorney to handle your tax evasion cases.
What does tax evasion mean?
Tax evasion is a deliberate action by an individual or legal entity aimed at avoiding the fulfillment of their tax obligations. This can manifest itself in various forms, such as:
- False information in a tax return – providing distorted data on income, expenses or property;
- Failure to file a return – completely ignoring the obligation to file tax returns;
- Using evasion schemes – creating complex structures for the development of operations that lead to the minimization of tax liabilities. For example, the use of offshore companies. Offshore or offshore target funds – a territory that provides preferential conditions for business, for example, low taxes, reporting without the need for explanations, the right to conceal business owners, etc. For example, after repeated attempts to catch Al Capone for various serious crimes, the US authorities were able to put him in prison and charged him with 22 counts of tax evasion and criminal liability for tax evasion was established.
- Accounting errors – incomplete or improperly organized bookkeeping, which can lead to misunderstandings about the amount of tax due.
It is important to note that tax evasion is also divided by the subjective side:
- Unintentional evasion. A citizen may fail to pay a tax on time due to unintentional reasons, such as temporary financial difficulties, bank bankruptcy or errors in payment planning. In this case, the violator faces a fine of an average of 20% of the unpaid amount. Some errors may be caused by negligence or lack of knowledge of tax legislation. However, in the eyes of the law and the state, such actions are still subject to punishment, according to tax legislation.
- Intentional evasion. If the tax is not paid intentionally, the fine will be ~40% of the debt. The statute of limitations for tax evasion of mandatory payments is three years from the end of the tax period, starting from the day after the end of the financial period in which the debt was discovered.
- Large-scale evasion. Tax evasion becomes a criminal offense if the amount of tax debt for the last three financial years exceeds a certain amount, on average in countries, this is $20,000. Various penalties are provided for such a crime, from a fine to imprisonment.
- Tax evasion in especially large amounts. This crime is classified as especially large if the amount of debt exceeds $50,000. Various penalties are also provided for it.
If the offender hides from the investigation or from paying the fine, the terms are suspended and resumed after the discovery of an individual or a representative of a legal entity. Liability for non-payment of taxes and liability for tax evasion can lead to serious consequences, including imprisonment.
What are the consequences of non-payment of taxes?
Non-payment of taxes can lead to serious consequences that affect both the financial and legal status of the offender. Firstly, tax authorities have the right to impose fines for non-payment or late payment of taxes. The amount of the fine may depend on the degree of evasion and the length of the delay, which is determined by the Tax Code. In addition to fines, a penalty is charged on the amount of unpaid tax, which increases the total debt. The penalty is calculated in accordance with the provisions of the Tax Code and accumulates for each day of delay.
In the event of evasion of large amounts of tax, individuals and legal entities may face criminal prosecution. This may include imprisonment, fines and other legal consequences. Tax authorities can also initiate the confiscation of property that was used to evade taxes or acquired with illegally obtained funds. If the violation is related to target funds, compensation for damages may be undertaken.
Compulsory labor may be imposed as a criminal punishment. This involves the convicted person performing certain work within the law and may be applied as the main punishment or in combination with other measures. Finally, imprisonment is a punishment measure consisting of depriving the convicted person of their freedom and keeping them in a correctional facility.
All these punishment measures are aimed at correcting the offender and protecting society. Criminal liability is imposed only on persons whose guilt has been proven. As a result of revealing facts of tax evasion, unforeseen expenses may arise related to legal bills, legal advice, representation in court, etc. The consequences of non-payment of taxes can be extremely serious and multifaceted, which makes timely access to professionals vital to minimize risks.
How do they find out about an offence?
The tax authorities have many tools to detect tax evasion. One of the main methods is inspections, which are carried out both scheduled and unscheduled. During these inspections, financial documents and tax returns are analyzed, which are then compared with data from other sources of information.
The analysis of financial statements also plays an important role. The tax authorities examine the statements to identify anomalies, such as a significant decrease in revenue while expenses increase, which may raise additional questions and require detailed investigation. Sometimes information about tax offences comes from third parties, such as former employees or competitors. These persons can report violations, which are then subject to inspection.
In addition, the tax authorities can cooperate with other government agencies, such as law enforcement agencies, to obtain additional information, which can also help to identify offences. An effective tax enforcement system allows tax authorities not only to identify violations, but also to take the necessary measures to eliminate them, including the application of criminal legislation, such as the Criminal Code of Ukraine.
How to prevent tax evasion?
Preventing international tax evasion is a key challenge for governments and international organizations. Several key approaches and initiatives are used to effectively combat this phenomenon:
One of the key tools is information exchange agreements. For example, the Automatic Exchange of Information (AEOI) allows countries to sign agreements that facilitate the automatic exchange of data on financial accounts and taxpayers. This helps identify undeclared assets. Mutual legal assistance also allows countries to cooperate in investigating tax crimes. International organizations such as the OECD (Organization for Economic Co-operation and Development) and the International Monetary Fund (IMF) play an important role in developing standards and recommendations to combat tax evasion. The OECD, for example, develops recommendations for the BEPS (Base Erosion and Profit Shifting) plan, and the IMF provides technical assistance and recommendations to improve tax systems.
Strengthening legislation is also an important area. Introducing strict measures such as high fines and criminal liability for violators helps reduce tax evasion. Creating transparent tax rules for multinational corporations also helps in this regard. Improving tax administration plays an equally important role. Investments in technologies to track financial flows, increasing the efficiency of tax administration, and training tax inspectors help increase tax responsibility among citizens.
Encouraging voluntary compliance with tax laws is also an important aspect. In the US and Europe, for example, tax breaks and amnesties are provided for those who voluntarily disclose their assets. Simplifying tax payment procedures also reduces barriers to compliance.
These measures require close cooperation between states, international organizations, and the private sector to effectively combat tax evasion at the global level.
How can our lawyers help you?
Our lawyers specializing in tax evasion cases offer comprehensive services aimed at protecting your interests. We are ready to offer the following services:
- Legal support – at all stages of preparation and filing of tax returns, a lawyer can provide legal expertise, which will help to avoid mistakes and violations. Our specialists know the peculiarities of tax authorities of different countries
- Protection in tax disputes – in the event of tax disputes between individuals and the state, our lawyers can act in your interests, protecting your rights and deservedly representing you in tax authorities and in court. We have extensive experience, which allows us to effectively resolve taxpayer issues within the framework of state law.
- Preparation of documents – we prepare all the necessary documents and explain which documents will be required for each specific violation.
- Representation in court – if your case has reached trial, our qualified lawyers are ready to represent your interests in court and justify your position.
Don’t let tax-related issues become a source of stress and anxiety. Contact our law firm for qualified assistance, and we will help you sort out any tax issues, preserving your interests and minimizing risks. Timely contact with professionals will allow you to avoid problems with tax authorities and ensure your peace of mind for many years.
