Is the tax evasion case filed against Royale Business Club makes the business fraud or illegal?
It’s on the news that BIR filed a tax evasion case against Royale Business Club for attempting not to pay the right taxes.
Let me give a simple definition of Tax Evasion based on my own understanding.
Tax evasion as understood is avoiding tax payments illegally.
Now, let me ask you again. If the action of the company lead to that illegal activity, Is the company considered a FRAUD?
At least on my point of view, it’s a NO. The business operation of the company is still in the business norms but the tax action of the company towards possible tax evasion is indeed a FRAUD. One should separate this two activities in understanding if the company is fraud or not. Why tax evasion is fraud?
The tax evasion action of the company is considered a fraudulent activity. The reason behind is that there is substantial under-declaration of revenue made by the company which is exceeding 30% as set in the Internal Revenue Code. No question to be asked about this, it’s the tax law which will stay as is. The company’s operation is not in question but the tax payments.
Obviously, the company will defend itself against this case because it’s a significant amount of money involved.
Tax evasion case effect to the company
As of now, the possible effects to the company are the following;
- Stress and No Peace of Mind to the Officers involved
- Additional Time and Money to be alloted because of the case
- The company will sure pay a big amount of money to settle this case
- For the distributors, this will depend on their trust to the owner and company – just like stated here Know and understand the company
You have to know this…
Tax is a burden that taxpayers need to pay. Without tax to collect, the government has nothing to spend to support the public activities such as hospitals, educations, infrastructures, job creation, etc…
Tax is a serious matter for every business the reason that it’s highly recommended that business should have a professional handling the taxes
Tax evasion is a big case which is a criminal case if I still remember it correctly. The case will take years to settle unless there is a compromise made.
Kaya kabayan, we are lucky because we are TAX FREE.