Tax Scam but I don't see what the scam is?
Oct 26th 2010, 7:51 am
#1
Truth is the safest lie.
Thread Starter
Joined: Jul 2008
Location: @ the beach.
Posts: 7,243
Tax Scam but I don't see what the scam is?
I don't understand the bizzare nature of this scam:
Linky: http://www.stuff.co.nz/business/indu...home-detention
So is it illegal to falsify business transactions and overpay your taxes?
Mr Liu created fictitious sales and expenses for each of the companies and then filed GST returns from an internet cafe. This was calculated to avoid detection, he knew very well what he was doing was wrong and now he’s paying the price.
So is it illegal to falsify business transactions and overpay your taxes?
Oct 27th 2010, 7:49 am
#2
Lost in BE Cyberspace
Joined: Jun 2005
Location: In a large village called Auckland
Posts: 5,249
Re: Tax Scam but I don't see what the scam is?
He was claiming losses and refunds of GST i.e. more expenses than sales.
The only transactions in the accounts were Inland Revenue refund cheques and withdrawals of those refunds in lump sums. No other business activity was recorded.
Oct 27th 2010, 9:35 am
#3
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Joined: Apr 2006
Location: Rangiora
Posts: 1,201
Re: Tax Scam but I don't see what the scam is?
So easy to do as everything is online now. I don't see that 5 months home detention and paying back $30k when he nicked $45k "sends a strong message to others trying to cheat the system" - unless it's the wrong message!!
Nov 2nd 2010, 9:34 am
#4
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Joined: Jun 2007
Posts: 2,994
Re: Tax Scam but I don't see what the scam is?
Yeah, now he gets to go on whatever jobseekers is round here and play on the wii for 5 months.
Nov 2nd 2010, 10:32 am
#5
Truth is the safest lie.
Thread Starter
Joined: Jul 2008
Location: @ the beach.
Posts: 7,243
Re: Tax Scam but I don't see what the scam is?
It would be great to write a blog about scams that probe big companies and tax departments for weaknesses to exploit, if only you could do it without fear of prosecution. Alas people don't take kindly to being made to look like fools
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