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How would they catch onto you?

Discussion in 'Business & Tax Advice' started by madsam, Jul 25, 2010.

  1. madsam

    madsam Junior Member

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    If I'm not paying any taxes, all I've got is money being deposited into my various bank accounts from my various income sources. I've exceeded the tax free allowance many times over on each account for the last 5 years. As far as I'm aware the only tax reporting the bank has is on the interest they pay on your balance, they just deduct it unless you've declared otherwise. Correct? Or do they report your balances to the government? I know there's much stricter regulations if you deposit a large amount of cash, but that's to do with money laundering and terrorism, and these are all transfers anyway. So, unless of course I'm subject to an audit which they only do to about 1-2% of population and they're usually people who do pay taxes to make sure they're paying the full amount, how would they catch on to my income and the fact I don't declare it? Should I bother to declare it?
     
  2. hopon

    hopon Newbie

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    What country are you in as the levels of regulation are different
     
  3. xfactornos

    xfactornos Regular Member

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    If your in the US, I would def pay them. Just because if you do get caught you have to pay all that back plus interest and thats going to suck! Thats just me though, do what you want :)
     
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  4. showbizvet

    showbizvet Power Member

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    You might skate for the rest of your life, might get caught tomorrow. Uncle Sam has his faults, but then don't we all. If you are making money, just put a portion aside and pay your taxes, you'll sleep better. And if that isn't the case, at least you won't worry when the phone rings or there's a knock at the door.
     
  5. aftershock2020

    aftershock2020 Senior Member

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    Not to mention further charges and penalties, as well as possible jail time. ALL governments frown on tax evasion. Pay and keep it square, we all have to, as it is something you just don't get around. You will eventually get caught and that sort of thing goes on your rep for life, as it is printed in the newspapers and made public record for anyone to see.

    That exposure will be the least of your worries should you be investigated, audited and found guilty of any illegal activity for profitable gain, which is FRAUD, in its various versions and levels. This will be followed up with civil charges of companies you spammed, ripped any product/service content from such as movies, music, scripts, software, etc.

    No one wants that kind of heat. It simply isn't worth the risk.

    I pay what I must in taxes so that I can keep my freedom, as it is a small price to pay...just my opinion though.

    Food for thought.
     
  6. madsam

    madsam Junior Member

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    I'm in Europe actually. Tax evasion is just as much an issue though. You're telling me what the risks are, I'm asking how would I get caught? Why bother if they're not going to catch on, how would they catch on?
     
  7. Dayum

    Dayum BANNED BANNED

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    Are CPA networks and such part of your income source?
     
  8. tacopalypse

    tacopalypse Executive VIP Jr. VIP Premium Member

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    most networks require you to submit your tax info before they can pay you.
     
  9. aftershock2020

    aftershock2020 Senior Member

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    The banks work with the tax commissions around the world. If anything pops up from check card spending, credit card use, flux in your spending/ living habits, general lifestyle spikes...any of that can bust you.

    You have to leave absolutely no footprint in banks, merchant accounts exceeding $5k per year by US standards...don't know what it is in Europe.

    It all plays out pretty much the same way. You have anything that leads back to you having an income that isn't reported properly and you are in the legal red tape up to your eyeballs.

    Any and all purchases online leave such a footprint, any cpa, ppc, auction trades, etc...all are tracked and reported, as those companies must cover their hides. They won't cover for you and risk that.

    IF you want to commit tax evasion, good luck, as it will be a short lived experience before living a resulting long-term prison stay. Whatever you get and don't report, I'd suggest you save up for a good lawyer.
     
  10. Sprouts

    Sprouts Regular Member

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    I disagree about paying tax. I don't know how it is in the US but in the UK you can make your own company and get all the money put into the company bank.

    Once you've done this just add your regular shopping, petrol, gas bills and anything else you buy and it'll look as if you broke even/made a small profit and you'll only have to pay tax on the profit.
     
  11. NoWhErE

    NoWhErE BANNED BANNED

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    Two things are for sure in this world : Death and taxes.

    I've been audited before and its a pain the butt. Sleep worry free at night and just declare everything you make.
     
  12. 6hundy

    6hundy Junior Member

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    the IRS in the States has a statute of limitations going back 3 years......meaning if you get audited, they can review your returns for the prior 3 years only.....however, that statute doesn't start counting until a return is actually filed. So if you went 20 years without filing and got audited year 21......the past 20 years of your life would be under investigation and you would be subject to penalties and interest for all of it.

    How would they catch you? Dont know. If you make small deposits and have multiple accounts, the likely hood of being audited is likely very small. But like everything else in life, its a risk/reward situation. Small chance of being audited and a HUGE payout if you do. I guess you gotta evaluate the risks for yourself and see if its worth the risk for you....
     
  13. dvdvids

    dvdvids BANNED BANNED

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    It's completely against my religion to pay any taxes at all. I don't give to the state nor I suck from them either! Fuck 'em!
     
  14. wrangler

    wrangler Regular Member

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    Do the math. Banks report interest. Govt makes a guess at the revenue based upon that interest, and especially any delta from last year. They then look at what you reported, and there's a difference. With computers and algorithms you'll before long trip a flag. And like folks say - that will be a world of hurt.