Fiscal fraud


It refers to the fraud committed against the tax administration of a State, through tax evasion and other illicit activities such as concealment of income, to evade the law and obtain tax advantages. Tax fraud tends to be mixed with the terms “tax evasion” and “tax avoidance”, even some people tend to use them as synonyms, but the reality is that although they are related, each one has a different meaning.

Consequently, we must be clear about what differentiates each of them, to better understand what they represent separately. Regarding tax evasion and tax fraud, these represent the action and the act, that is, when talking about tax evasion it refers to an activity, it is the (illegal) action that is exercised in the administrative part of an organization , in order to hide or “make up” the amount of goods and income obtained during a fiscal year, in order to pay less taxes, the “black money” strategy is often used, where commercial activities are carried out and cash earnings, so that they do not enter any banking entity and the state does not have access to the information of that part of the income obtained.

For its part, there is tax fraud, which corresponds to the act in which an organization commits fraud before the State tax administration, through altered documents that seek to evade taxes. It represents a deception to the nation that (like any crime) has its criminal consequences.

On the other hand, there is tax avoidance, which refers to actions that are initiated through legal means, seeking to minimize or evade payment of taxes. In this case, they hide behind the law, through loopholes, to obtain tax advantages and justify the fact of not paying or paying less taxes. Therefore, the current “within the permitted margins” does not correspond to a tax offense.

In tax fraud and tax evasion, the case is the opposite, since both do represent a tax offense that has its tax consequences. In many countries, for this type of crime, a limit amount is established, where if the accused taxpayer did not pay an amount less than or equal to the established amount, it can be settled with the law by administrative means, through the payment of fines, if on the contrary, the sum of money in question exceeds what the state has set as a limit, it can be sanctioned with penalties that establish deprivation of liberty.