Types of Tax Fraud Cases

Types of Tax Fraud Cases are as follows:

1. Criminal Fraud - A criminal tax fraud case results when all the elements of fraud can be proven beyond reasonable doubt. "Proof beyond reasonable doubt" does not mean such a degree of proof as absolute certainty, excluding possibility of error.

2. Civil Fraud - When all the elements of fraud cannot be proven beyond reasonable doubt, but these elements can be established by clear and convincing evidence amounting to more than a mere preponderance of evidence, civil fraud exists.

From routine examination of returns:

1. Keeping no records of inadequate records despite substantial transactions reflected in the returns;

2. Standard in living of the taxpayer, such as the possession of expensive cars and jewelries; or staying in luxurious mansion, and ownership properties whose values far exceed his probable sources of income as declared per return;

3. Records verified were not properly declared for the tax purposes;

4. False vouchers and receipts of the routine examination.

From information furnished by:

1. An informant who has knowledge of the transactions of the taxpayer which were not properly declared for tax purposes;

2. Referrals from other government offices or from other investigating units of the BIR.

Thru initiative of the investigating officers:

1. From newspaper reports;

2 Thru research of available government records such as from offices of the Register of Deeds, Bureau of Highways, and other government offices; and

3. In relation to an investigation of another taxpayer, where suspects that certain transactions were not declared for tax purposes.