In the context of forensic audits, nearly everyone is a potential suspect. Unlike financial statement audits, which are structured and formal, forensic audits can be conducted in various settings, including at an individual level or household. Forensic audits can be employed to scrutinize a person and uncover potential money laundering or fraud charges. Maintaining transparency in our financial dealings is essential to avoid potential complications.
The reality is that a number of individuals earn substantial income from side hustles beyond their regular salaries, which are often used to acquire assets. However, failing to declare such income to tax authorities can lead to future issues. Many individuals view paying turnover tax as an unnecessary expense not knowing potential problems that come with concealing incomes.
Although tax evasion is a criminal offense, tax compliance is also essential for personal and financial integrity. We live in a complex world where jealousy and resentment can arise from our successes, such as acquiring a new home or vehicle. It is not uncommon for colleagues or supervisors to feel envious when others achieve more despite receiving the same compensation.
So, when your neighbor reports you to the police or Anti-Corruption Commission for suspicious corruption or illegal acts, you will be required to defend yourself. In your defense, you will begin to reveal that, actually, you are doing a business in Soweto market, which gives you K10,000 monthly. To seal up your defence, you will go further to state that your wife too sells chikanda, which gives her K5,000 monthly.
The next thing the investigator will ask you is to produce a record of tax payments, and you will begin shivering, thinking your aunt in the village has bewitched you. I know most of us don’t want to share our private hustles with workmates or friends, but please always share them with the Tax Authority. It will really help you in the future.
You may think you are clever by not paying taxes, not knowing that you are digging a terrible hole for yourself. Most of these people you see being prosecuted are mostly non-compliant with the law.
Remember that during investigation, the investigator will add all your possible legitimate incomes compared with the assets acquired. Any difference will be deemed to be proceeds of crimes until you justify. You see, justifying your incomes is very easy, but what catches people is the payment of taxes.
By: Winfred Mupakasi Silumbwe.
