I've withheld taxes from the guberment for 1.5 years - am I fucked?

rusvik

rusvik

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Jan 21, 2011
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I am just joking of course. This is purely a hypothetical question.

But let's assume that I haven't paid taxes - neither sales tax or income tax - on my business income for 1.5-2 years. I guess I owe something like $30K. It didn't make sense to pay them as it would have meant I couldn't eat and I would have ended up on the dole paid for by others, but try convincing a tax agent of that logic.

How fucked am I?

I should probably say that I'm not Americun, but in northern europe.

What are my options srs? I've considered closing my current biz and opening a new one with limited liability and then report and pay taxes from now on. I doubt the taxman will look favorably on my case if I report it, since I suppose what I've done could be classified as tax evasion.

I've also considered opening shop abroad and moving fast.

My biggest concern is jail and that the gov will seize my domains and screw everything up.

Please help brahs!
 


I withheld for about 7 years before, and I was fine. Got a tax lawyer, negotiated a settlement for me, which was quite generous in my favor, and all was well.
 
What country are you from? Jail is unlikely unless there's money laundering involved, if they catch you it will more likely be a large fine, sometimes in multiples of what you would owe them.

Kiopa_Matt said:
I withheld for about 7 years before, and I was fine. Got a tax lawyer, negotiated a settlement for me, which was quite generous in my favor, and all was well.
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Did they contact you first or did you bring it to their attention?
 
Kiopa_Matt said:
I withheld for about 7 years before, and I was fine. Got a tax lawyer, negotiated a settlement for me, which was quite generous in my favor, and all was well.
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Was it Max, from BlueTax? I heard their lawyers don't mess around.

Actually I've always been interested in shit like this to be honest. What % less did you end up paying if you don't mind?
 
Most all countries, especially in northern europe, run tax evasion amnesty programs. Those are mostly the reason they bring attention to that whole switzerland thing. Between those who are allegedly on these cds and those who could actually be convicted based on the evidence they have, that numbers probably zero. they just play some fear game trying to get people to confess.

but its tricky, because once you get to discuss things with them, they know enough. they could just as easily claim to already have had enough evidence. whether thats the truth has to be decided by courts, who are generally hugely in the governments favor when its about taxes. even if you win, youve spent a couple years in jail. its like telling google that youve deleted spam links. means youve had them at some point.

that being said, if you come clean on your own terms in tax evasion, youll very rarely face prison time. your money is out of the country and the only way for them to get it back is to cut some kind of deal with you. youll show some faux remorse for the cameras and everyones happy. if they catch you, theyll make you their bitch.
 
Hire a tax lawyer, and negotiate a settlement. You'll probably get a fine, and you'll have to pay. Amount depends on your jurisdiction, but in the UK it could be anywhere from 30% - 100% of the tax due, plus interest. It's very unlikely you'll go to jail, unless you scam them out of $XXX,XXX and spend a lot of time trying to avoid it.

The penalties are ALWAYS much lower if you tell them, rather than waiting to be found out via an audit.

A decent tax specialist (accountant or lawyer) will help you handle it in a way that minimises the spanking they give you.

NB: in the UK, the above regime doesn't apply if you're a Plc and owe them £XX,XXX,XXX,XXX of tax. In which case, they'll just tell you to pay whatever you feel like, and take the senior tax office employees out for a few nice dinners.
 
There is no point in scaring the OP by saying shit like "jail is very unlikely," there are shit-tons of people who don't pay taxes properly in every country and it would be impractical to put them in jail. The IRS is vicious as fuck and even they don't put people in jail because they decided to pay overdue taxes. And most other countries don't have tax collectors that are nearly as draconian. Why would the taxman want to scare people into hiding rather than paying? Just visit your country's tax website, they probably have instructions posted for paying overdue taxes. Of course you are going to get some fees but oh well.
 
"NB: in the UK, the above regime doesn't apply if you're a Plc and owe them £XX,XXX,XXX,XXX of tax. In which case, they'll just tell you to pay whatever you feel like, and take the senior tax office employees out for a few nice dinners."

For real ? I thought that bribes applies only to corrupted countries like mine, now I see people are same everywhere LOL
 
The problem is that the fine seems to be 100% or more of the tax missing or jail in up to one year. You would get less jail time for killing someone with your car. On top of that probably pay the tax as well, which means it could put me in 60K debt. Also, I didn't just not report sales tax, I reported 0 income. Do you think the best method would be to close this company asap?
 
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rusvik said:
The problem is that the fine seems to be 100% or more of the tax missing or jail in up to one year. You would get less jail time for killing someone with your car. On top of that probably pay the tax as well, which means it could put me in 60K debt. Also, I didn't just not report sales tax, I reported 0 income. Do you think the best method would be to close this company asap?
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Are you in Sweden by any chance?

Hmm... bad luck. Leave the country, dude. (or hire a lawyer)
 
seolinker said:
"NB: in the UK, the above regime doesn't apply if you're a Plc and owe them £XX,XXX,XXX,XXX of tax. In which case, they'll just tell you to pay whatever you feel like, and take the senior tax office employees out for a few nice dinners."

For real ? I thought that bribes applies only to corrupted countries like mine, now I see people are same everywhere LOL
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Yup:

http://www.telegraph.co.uk/news/pol...er-25-billion-tax-break-for-big-business.html

Top taxman set to retire as head of HMRC after catalogue of disasters | Mail Online

(2nd link is fascist webcomic the Daily Heil, but they're reporting on a true story for once here, other, proper newspapers covered it too)
 
this joke seems to be a bit too real, and if its really not a joke, quit disclosing information. putting some bullshit disclaimer like "this is a joke" somewhere wont make prosecutors look the other way.
 
I doubt there'll be prosecution for a tiny amount like that. Come clean and you'll likely get a hefty penalty tax on top of the owed tax. If you have taken active steps to conceal your income it may be a more serious thing. Jail time is very unlikely. A fine is not.
 
Shave your head, or color your hair, pay someone in india to make you a set of new identity papers and you should be fine. Just remember you may have to do that about every 2 years
 
Kiopa_Matt said:
I withheld for about 7 years before, and I was fine. Got a tax lawyer, negotiated a settlement for me, which was quite generous in my favor, and all was well.
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Yeah, but you should have pointed out that you are CANADIAN (for those that don't know) ... The U.S. gov doesn't fuck around when it comes to taxes.

I've got a friend that runs a construction business in Calgary that hasn't paid taxes for 10 years, and he didn't hear a thing from the government! His plan is to move to South America pretty soon. I don't know how he can sleep at night. I'd be terrified they come get me the day I'm leaving for the airport lol

Pay your taxes kids. (or move to another country)
 
1.5 years is nothing. You're not genuinely evading, you're just ... delinquent.

Look up tax amnesty, and/or look for a libertarian tax accountant (because they are less likely to get you in trouble with the gov) to advise you on the best way to file.

Technically, it's better to file and negotiate payment than to not file at all.

I'd avoid lawyers, since they are mostly expensive scam artists when it comes to tax issue resolution.

Hang in there.
 
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