Penalties for Tax Evasion
Tax evasion is a criminal offense and attracts fines and penalties including,
1. Taxpayers found guilty of tax evasion may be subject to civil penalties including fines and interest charges on unpaid taxes. However, the amount of fines depends on the amount of taxes evaded.
2. Tax evasion is considered a criminal offense and is subject to criminal charges like imprisonment, probation, or community service.
3. In case of asset manipulation, the tax authority has a right to seize bank accounts, real estate, vehicles, or other valuable assets of the defaultor.
4. If tax professionals like CA or Accountants are proven to be guilty of updating and misrepresentation of valuable information, then the tax authority has a right to take legal action against them including the loss of their professional licenses or credentials.
5. Taxpayers who have been found guilty of tax evasion may be subject to increased scrutiny like more frequent audits, investigations, or monitoring of their financial activities.
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