Tax and commercial fraud

Tax and commercial fraud is that situation in which the error and concealment of data is misleading and used to obtain an illicit benefit, either to the public administration or private persons.

In general, fraud involves the concealment and deceit of any of the parties interested in the information of the economic and financial situation of some good or personal assets, in order to reduce or eliminate the payment of the consideration or taxes, or obtaining a greater improper amount.

Commercial fraud occurs when in transactions, contracts and operations between two or more natural or legal persons, practices contrary to truth and rectitude occur, that is, fraud in documents that can serve as the basis for a commercial procedure, or for example, in the concealment of the true faithful image of the economic and financial structure of a society, or concealment of accounts from debtors and creditors. In certain circumstances, when a consequence of malpractice with intent is in detriment of the interests of third parties, it is when it is called commercial fraud.

In this sense, we can also talk about tax fraud in that situation in which a person or organization avoids paying taxes to the treasury.

Differences in tax fraud

Whenever there is a concealment of financial or income information or directly an evasion, we talk about tax fraud, that is, that circumstance that, by intention or omission, the correct procedure has not been correctly carried out in the transmission of the information to the tax agency . That is why we must talk about tax evasion, avoidance and tax fraud:

  • Tax evasion: is the deliberate breach of the different tax obligations by any means, that is, any action or omission with the intention of reducing, suppressing or delaying compliance with tax obligations.
  • Elusion: is the use of tools and procedures that take advantage of legal gaps or border the law, that is, actions are used to obtain tax benefitsor pay less taxes or delay them over time, and although everything is legal, to Sometimes there is doubt about the procedures used.
  • Fraud: the fundamental characteristic of tax fraud is premeditation, that is, the clear intention of not paying or paying less to the treasury, with the objective of obtaining more income.

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