Tax Law- Answering Tax Investigations, Charges

Recent years have witnessed an increase in corporate tax fraud cases across many countries. Corporate tax fraud according to Missouri tax attorney can result in huge tax bills and huge losses for business organizations. Thus, every country, with or without tax havens, is constantly looking for competent tax law attorneys to conduct meaningful tax investigations.

Research into corporate tax fraud is the main area of limited tax investigation; thus, this research leads to the ever-widening tax compliance literature, proposing an integrated model to investigate corporate tax fraud from a Malaysian perspective. Under most tax laws, there are specific and clear set of rules and exceptions, which a taxpayer must follow. The Malaysian tax law does not provide an exemption for taxpayers who make false statements under the tax laws. False statements are generally punishable with criminal prosecution under the CAIT tax laws.

 

Under some specified circumstances, a taxpayer may be subjected to criminal prosecution and penalties for criminal tax fraud; such occasions include knowingly making false statements for personal use, knowingly making false statements for non-use, and knowingly making false statements for revenue purposes. In Malaysia, there are specific criminal tax fraud convictions, which include: tax evasion, misrepresentation, and money laundering. Malaysian authorities take the view that the best defence against tax fraud is for a taxpayer to never do it. A guilty plea can often result in prison terms.

 

There are two ways in which a tax fraud can be tried in a federal court in the U.S. Criminal tax fraud can be tried by a jury in a civil proceeding or by going to trial. If a taxpayer or his or her company goes to trial then the taxpayer may choose to use one of two alternative remedies provided by law – liability settlement and tax avoidance. A liability settlement is a tax avoidance agreement where the government takes care of paying taxes and avoids any penalties or fines on behalf of the taxpayer. Tax avoidance is a process that saves the least possible amount of tax.

 

There are a number of ways in which a taxpayer can obtain expert legal advice in preparing and pursuing any tax fraud case. These include obtaining a tax attorney, a certified public accountant, a tax consultant, a business lawyer or an enrolled agent. Taxpayers should ensure that the professionals they select to assist them in their representation are not related to any tax law firm, as they will only provide information on the advice that they give and not facts of the case. It is important that taxpayers obtain the assistance of these professionals from a bona fide and reputable tax firm.

There are a number of common schemes that involve corporations and individuals for avoiding or minimizing tax liability. The most common scheme is the “earned” income tax credit (EIC). An individual who has a CPA can prepare a tax return (or an income tax return), which is false and misleading in claiming deductions and credits. The false income claim then allows the individual to earn a refund with the help of the EIC. For this reason, it is essential for everyone to understand the difference between earned income tax credit (EIC) and a refundable tax credit (RTC).