Tax Evasion Tactics and How to Uncover Them
by Linda Athanasiadou, Anti-Fraud Specialist, and Researcher, Regulatory Compliance and AML Expert Tax evasion tactics pose a significant challenge to tax authorities and compliance professionals, as perpetrators continuously devise sophisticated methods to conceal income, evade taxes, and exploit loopholes in tax laws. Uncovering these tactics requires a comprehensive understanding of tax regulations, investigative techniques, and forensic accounting principles. By leveraging advanced tools, technologies, and analytical approaches, tax authorities and compliance professionals can effectively detect and deter tax evasion. Here are common tax evasion tactics and strategies to uncover them: 1. Underreporting Income Tactic: Taxpayers may deliberately underreport income from various sources, including wages, investments, self-employment, and business activities, to lower their tax liability. Detection Strategy: Conduct thorough reviews of financial records, bank statements, income statemen