Tax evasion is the act of not reporting taxes, declaring without accuracy or failing to pay them. This practice violates the Law on Crimes against Tax, Economic and Consumer Relations and penalties can be significant, including fines and even imprisonment.
With the computerization of accounting processes, it was easier for the tax authorities to detect unusual activities that could trigger audits and audits. Among these activities, we can mention:
- Inadequate records;
- Failure to submit tax returns;
- Implausible or inconsistent explanations of fiscal behavior;
- Concealment of assets;
- Lack of cooperation with tax authorities;
- Engagement in illegal activities;
- Attempt to conceal illegal activities;
- Cash negotiations;
- Lack of estimated tax payments.
That way, learning more about tax management, hiring an experienced tax services New York, and using computerized tools can ensure the financial health of your business as well as minimize the possibility of tax problems.
The most common tax management mistakes
Tax management consists of knowing how to manage the taxes and contributions of a company, in order to plan and control its operations. However, in the face of the bureaucracy, this is a complex function, which can cause entrepreneurs to make mistakes in this process.
The lack of tax planning is one of the main reasons that drive companies into bankruptcy. Without this control, your company may pay more taxes than you need or even fail to pay something important, which will make you liable for fines.
At the moment of opening, there are so many details as to the tax regime that the entrepreneur can end up choosing a type that does not bring him financial advantages. Therefore, it is necessary a tax consultancy in order to choose the best option for your company.
Another common mistake is to ignore changes in accounting laws. Rules, procedures and laws change at all times.