Tax Audit Techniques in Cash Based Economies
A Practical Guide
This practical guide explains, for the benefit of tax collection professionals, how to detect unrecorded cash transactions. Most developing countries have largely cash-based economies, where it can be both easy and safe to conceal many transactions from the authorities. The size of the resulting 'informal economy' can rival or even exceed that of the formal economy. Even in developed countries cash transactions are often used to evade tax, thus the guide is of use to professionals worldwide.
This second edition has been comprehensively updated, and included new material on brokers, estate agents, and expanded sections on importers, exporters, wholesalers, transport businesses and insurance companies.
The plentiful case studies will allow tax auditors and inspectors to see the application of the guidelines in practice and adapt the techniques to their own circumstances.
Contents
Foreword
Introduction
Purpose and Scope
Business Culture
Causes of Evasion
Application of Untaxed Money
Types of Evasion
Non-filers
Under-reporting
A. Manufacturers
B. Importers and Exporters
Importers
Exporters
C. Wholesalers and Retailers
Wholesalers
Retailers
D. Professionals
Doctors
Lawyers
Architects
Chartered Accountants
Consultants
Estate Agents
Brokers
E. Transporters
F. Insurance Companies
G. Cinemas or Movie Theatres
H. Contractors and Suppliers
Contractors
Suppliers
I. No Accounts Cases
Wealth statement
Expenditure statement
J. Salary Cases
K. Rental Income
L. Loans and Credits
Cash Credits
Private Loans
M. Fictitious or Inflated Overheads
Misreporting
Diversion of Income
Proceedings Under Other Fiscal Laws
Miscellaneous
Common Practices
Investment in Property
About the contributor
Sheikh Sajjad Hassan (Author)
Sheikh Sajjad Hassan is a former Chairman of the Central Board of Revenue of the Pakistan Tax Service. Mr Hassan is now a leading practising consultant in taxation laws.Browse subjects
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