Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
what do you call this tax evasion case?
2 companies owned by 1 person, 2 different ventures in one establishment/building - IT and advertising, both have 2 different names, but when tax inspectors comes in they bring down one company name and then instruct the employees to tell the tax investigators that their company is the other company. the employees in the IT company... their social security and other benefits are registered to be - they are working for the advertising agency. what is the violation of the company?
to give more explanation on the situation.. the employees are also scared to lose their jobs so they comply and agree to the company's way of running the business... the IT company is somewhat not registered or not paying tax, the I.T. Employees' benefits are named under the AD agencie's company name. when a tax inspector is coming, the owner instructs the IT employees to cease all logos or signages of their company name and hide all their company I.D.s, and if asked individually by the inspector the employees should say they are working for the AD agency. the IT company has around 30 employees and has about 10-15 clients already.
im looking for the exact technical term of.. there is an unregistered small company operating within/under a large company.
4 Answers
- troLv 79 years agoFavorite Answer
if you have two companies in the same office, same owner, there still needs to be separation of all aspects so that each has its own proper accounting for itself
unfortunately it sounds like the employees work for both and this is not good
and telling inspectors anything that is untrue is also not good
- Anonymous9 years ago
There may be no tax evasion. Sounds like all the employees are getting taxed, etc, just by a different company than the one they think they work for.
It doesn't matter what company they work for on paper.
- figment_usaLv 59 years ago
The owner may be deducting the salaries of all employees on both companies' tax returns. This creates a double deduction and yes, it is illegal.
- ?Lv 79 years ago
Very confusing for every one that is involved in it at that time in their life.
And what tax inspectors are brought in at that time in this game that you are playing here for this purpose and time in your life.
And when they ask to see the books and written records for this purpose and time what is really going to happen then. Good luck to you.
Hope that you find the above enclosed information useful. 09/24/2012
