Key Tax Categories and Tax Fraud Explained
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Types of Taxes
Income Tax: A percentage of individual earnings filed with the federal government.
Corporate Tax: A percentage of corporate profits taken as tax by the government to fund federal programs.
Sales Tax: Taxes levied on certain goods and services.
Property Tax: Based on the value of land and property assets.
Tariff: Taxes on imported goods, imposed to strengthen domestic businesses.
Estate Tax: A rate applied to the fair market value of a property at the time of death.
Understanding Tax Fraud
Tax fraud involves failing to pay the government (e.g., town council, provincial government) the taxes corresponding to income or benefits obtained during a specific period.
Tax Evasion: Involves concealing income (either domestically or in other countries, often referred to as “tax havens”). It can also include failing to declare an increase in assets.
Underground Economy: Consists of performing economic activities outside the official tax system, thereby avoiding tax obligations.
Applying False Deductions: Involves submitting false documents or information when filing tax returns to unlawfully reduce tax liability.