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Tax Audit Techniques in Cash Based Economies:
A Practical Guide
Size:
240 mm x 165 mm
ISSN:
Categories:
Tax Policy
ISBN No:
978-0-85092-824-2
Publication Date:
10-2005
Number of Pages:
86
Status:
In stock
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Description
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.
The author explains methods to detect these cash transactions in important major categories of cases, and provides guidelines for detailed auditing in other cases.
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.
Published by the Commonwealth Association of Tax Administrators and distributed by the Commonwealth Secretariat.
Contents
The Author
Introduction
Purpose and Scope
Business Culture
Causes of Evasion
Application of Untaxed Money
Types of Evasion
Non-filers
Survey
Under-reporting
A. Manufacturers
B. Importers and Exporters
Importers
Exporters
C. Wholesalers and Retailers
Wholesalers
Retailers
D. Professionals
Doctors
Lawyers
Architects
Chartered Accountants
Consultants
E. Transporters
F. Cinemas
G. Contractors and Suppliers
Contractors
Suppliers
H. No Accounts Cases
Wealth Statements (Also called statement of “Assets and Liabilities”)
Expenditure Statement
I. Salary Cases
J. Rental Income
K. Loans and Credits
Cash Credits
Private Loans
L. Fictitious/Inflated Overheads
Mis-Reporting
Diversion of Income
Proceedings Under Other Fiscal Laws
Miscellaneous
Common Practices
Investment in Property
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