Income tax offenses are considered criminal in all respects. If the tax debtor did not work in compliance with the law, for example, did not report and did not pay income tax, he may be sentenced to imprisonment or fine. Income tax offenses are divided into offences of technical nature and substantive offences, while the substantive offenses are considered more severe. It should be noted that in recent years, strict measures were taken against income tax offenses, either by the tax authorities or by courts.
Situation worsens in case of business owners that do not pay taxes, which leads to depletion of the company’s financial resources. People, who do not pay income tax, harm the state’s ability to invest in public infrastructure and citizens’ wellbeing. It should be noted that courts do not tend to be forgiving when it comes to tax offenses. In many cases, attorneys representing business owners accused of tax crimes, tend to ask for a financial penalty, i.e. fine payment.
What are technical offenses in the field of economic offenses?
These are tax offenses committed with no criminal intention, for example: failure to submit an annual statement or a capital statement on time. Punishment in this field can be a year in prison or a fine. After the court examines that these are the reasons that caused the business owner not to pay taxes on time, courts’ tendency would be to ease the punishment.
Substantive tax offenses are considered the most severe type of offenses that involve criminal intent of the debtor to avoid paying income tax. Conducting false accounting books can lead to 5 years in prison under standard circumstances and 7 years in prison under aggravating circumstances. That tax offences are considered criminal offences in all respects.
How to handle Income Tax Authority investigation?
You must not provide answers during the investigation if you don’t know what you have been asked about. Seemingly, innocent questions can contain a trap, especially since tax-related questioning can be interpreted in a different way.
- It is better to say that you do not remember, rather than to be caught lying.
- It should be taken into account that investigations are recorded.
- It is important to carefully read investigation content prior to signing it and you have the right to ask to correct the recorded content.
- Remember that you always have the right to submit an application to convert the indictment into a fine, in case of substantive tax offenses.
- It is important to use the services of a criminal lawyer specializing in all aspects of economic crimes.
Ronen Oren & Co. Law Office specializes in representing suspects and defendants in the field of income tax offenses. The firm has an impeccable reputation in client representation in conjunction with the tax authority and prosecution.
The firm specializes in providing a thorough representation to clients accused of technical offenses, such as failure to submit an annual statement or a capital statement on time, failure to carry out tax withholding or transfer a tax deducted in compliance with the Income Tax Ordinance, as well as in case of substantive tax offenses, such as tax evasion, omitting revenues, conducting false accounting books, submitting false reports and assisting another person in committing tax crimes.
In addition, our experts provide consulting and representation services throughout the processes of ransom, voluntary disclosure, investigations and arrests, and submits applications to replace the charges with an administrative fine and ransom.