Taxation Of The United States

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Introduction and background This paper discusses the various aspects of taxation in the United States and in particular the provisions of the Tax Code Title 26 Section 1702 and 1706 on Attempt to Evade or Defeat Tax and Fraud and False statements, respectively. For this paper we shall refer to the Tax Code as “Code” in its general context. Taxation is the power of the government to collect from its citizens taxes in order to have funds to run the government, provide basic services like education, health, peace and order, military defense, infrastructure such as ports, roads and bridges for the movement of people and cargo, among others. Taxation is sometimes referred to as the government’s power to confiscate. This in effect is its political power as well as its obligations to the taxpayers and non-taxpayers as well. One of the primary aims of government is to ensure the economic growth of the country and this is measured by the gross domestic product index (GDP) which is a summation of the production performance of the economic sectors of the country. The Gross Domestic Product includes, among others, the domestic production volume for local consumption and for exports of commodities and services. The function is its obligation on the economy or its economic power. As the beneficiaries of the above-mentioned services it is likewise the obligation of all citizens and residents of the country to pay on time their taxes correctly. And the Tax Code of the United States is the law governments all aspects of taxation for compliance and the administration 's sanctions as well for any violation of the Code. This function would be referred to as its social power or obligation. Title 26 of the Code refers to the Administration o... ... middle of paper ... ... fact and in truth the expenses are fictitious. An act where the revenues are understated and the taxpayer declares that all the sources of revenues of the taxpayer have fully declared and included in the taxable revenues. It should be noted that the declarations are material in nature for an act to be considered perjury. 2. Aid or assistance This is an act of assisting another person or taxpayer which will show as if the return or those that are declared therein are true and correct. The person that commits this act of assistance may not be involved in the activities or is actually involved in the activities themselves. An example of this assistance is when the person helps procures materials that are smuggled and taxes have not been paid on them. This could happen when the raw materials used are imported, or are stolen. 3. Fraudulent bonds, permits and entries
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