Scams Income tax

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Scams Income Tax


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    • Tax evasion is the general term for efforts by individuals, firms, trusts and other entities to evade taxes by illegal means .
    • Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability, and includes, in particular, dishonest tax reporting.
  • 4.
    • Tax avoidance is the legal utilization of the tax regime to one's own advantage, in order to reduce the amount of tax that is payable by means that are within the law.
    • Tax protesters
    • Tax resistance
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    • McDonald's in Ludhiana
    • The McDonald's pays about 10m rupees ($241,000) a year in VAT - some 90% of all restaurant VAT collected in the district, but it has only 10% of sales.
  • 7.
    • If the VAT revenues from one entity which has 10% of the market is more than that of 90% of the market, there is an obvious discrepancy .
    • Although government revenues in most states have risen after the introduction of VAT, Punjab seems to be a sorry exception
  • 8.
    • Jammu and Kashmir Crime Branch (CB) presented a challan against a firm and a goods carrier for misusing CST and GST numbers
    • loss of Rs 1.20 crore to the State.
    • Production of fake documents for obtaining registration from the Sales Tax Department .
  • 9.
    • Reyaz Ahmed had applied before the Sales Tax authorities for registration of a fake firm namely HANAAN TRADERS
    • Imported goods worth Rs 1.20 crore from outside the state by using fraudulently obtaining CST/GST numbers.
  • 10.
    • Rs 35,000 crores was the estimated size of the scam
    • Hasan Mohammed Ali - an affluent business man having interest in horse breeding, exports, and horse racing.
    • The IT Department and raided Ali's offices.
    • The computer hard disc contained details of transactions totalling to Rs 35,000 crores in 10 Swiss bank accounts.
  • 11.
    • Raided Khans premises in January and seized Rs85 lakh in cash. Khan also surrendered concealed income worth Rs4 crore.
    • Khan was issued a PAN card in 2005, but he did not care to pay taxes since .
    • A few of the Enforcement
    • Directorate personnel who
    • were investigating the
    • Swiss bank accounts were
    • moved out of the case.
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    • Mrs Kulwant Kaur reportedly sold properties worth crores of rupees at a throwaway price of about Rs 10 lakh to evade income tax of Rs 1.83 crore.
    • Inherited the property from
    • her deceased husband
    • Income Tax ( IT) sleuths had
    • conducted a raid at her residence
    • on January 8, 1999.
    • The assessee was running a brick
    • manufacturing plant.
  • 14.
    • The IT Department had completed the assessment on January 30, 2001 and had imposed a tax liability of Rs 1,83,12,000
    • The assessing officer, had conducted
    • the raid under Section 132 of the
    • Income Tax Act 1961.
    • All the sale deeds were reportedly
    • registered at Joint Sub Registrars
    • office, Dehlon .
  • 15.
    • The sales deeds had been effected only to play fraud.
    • the IT officials had seized all property documents in the possession of assessee. But she sold the property despite not having original document in her possession.
    • The accused had not cooperated with IT sleuths during the raid and subsequent inquiry. Rather she had devised a trick to sell her disputed properties .
  • 16.
    • Commercial Tax Department served a notice on Airtel seeking payment of Rs. 24.18 crore as tax, interest and penalty for the sale of `light energy' to its customers for providing broadband through optical fibre cables (OFC).
    • Estimated a loss of Rs. 1,200 crore to the State
    • Bharti Televentures had contended in the High Court that re-assessment orders passed by State tax officials and the issue of demand notice was not valid as it did not attract VAT.
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    • OFC broadband operators are running a business venture after investing thousands of crores to put in place a state-of-the-art set-up to artificially generate light energy and supply it to its customers
    • Whoever sells light energy is liable to pay VAT as it comes under the category of goods, and hence its sale constitutes taxable turnover attracting VAT at 12.5 per cent
  • 18.
    • The efforts of the Income Tax Department to unearth black money and unaccounted assets yielded an additional income of Rs 3.25 crore from a group of companies in Jagraon, engaged in the business of flour mill, rice shellers, and dealership of fertilisers, petrol stations and commission agents.
    • Joint Commissioner of Income Tax
    • ( Moga range) conducted a survey
    • u/s 133(A) of the Income Tax Act .
  • 19.
    • Unaccounted transactions and suppression in sale proceeds of land were detected .
    • The assessees were made to offer an additional income of Rs 3.25 crore and had to agree to fulfil the tax liability .
  • 20.
    • Will manage rising volume of tax-payers data, making tax evasion difficult
    • Profile each ones expenditure habits.
    • The exercise would also include matching of names, addresses, dates of birth and permanent account numbers (PANs).
  • 21.
    • Matching data in Annual Information Returns (AIRs) with records received from banks, credit card companies, mutual funds, stock market and property registrars.
    • Collecting information about excise, customs, service and income tax paid by corporates for better tax assessment.
  • 22.
    • The proposed software will help the Income Tax department to match these information against PAN numbers and prepare comprehensive dossiers of tax-payers.
    • These will be finally used by the Income Tax assessing officers to match the entries with the returns filed by tax-payers
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