TAX OFFENSES AND SANCTIONS PROBABILITY - WEST GERMANY

• NCJ Number: 60598
• Journal: Kriminologisches Journal Volume: 11 Issue: 1 Dated: (1979) Pages: 61-74
• Author(s): K-H MOENCH
• Date Published: 1979
• Length: 14 pages
• Corporate Author: Juventa Verlag
• Publication Format: Article
• Publication Type: Statistics
• Language: German
• Country: West Germany (Former)

Annotation

TAX FRAUD IN WEST GERMANY AND THE PROBABILITY OF AN OFFENDER BEING PROSECUTED ARE EXAMINED WITH STATISTICAL ANALYSIS.

Abstract

TAX OFFENSES HAVE ONLY RECENTLY BECOME THE FOCUS OF CRIMINOLOGICAL ATTENTION; HOWEVER, NO EMPIRICAL STUDIES ON THE PROBABILITY OF TAX OFFENDERS BEING PROSECUTED AS YET EXIST. TO FILL THE GAP, ANALYSIS OF 206 CHARGES OF TAX FRAUD COLLECTED IN A WEST GERMAN LEGAL DISTRICT BETWEEN 1972 AND 1974 WAS CONDUCTED. SINCE THE STATISTICS NECESSARILY ONLY INCLUDES REPORTED CASES OF TAX FRAUD, THESE CASES MUST BE USED TO MAKE INFERENCES CONCERNING THE GREAT NUMBER OF UNDETECTED OFFENDERS UNTIL OVER A YEAR AFTER THE OFFENSE WERE CONSIDERED TYPICAL OF UNREPORTED OFFENSES. AN EXAMINATION OF THE GERMAN REVENUE SERVICE'S RECORDS OF TAX FRAUD REVEALED THAT THE AVERAGE DAMAGE OF A TAX OFFENSE IS FAR GREATER THAN THAT OF BANK ROBBERY. YET, THE TAX OFFENDER IS FAR LESS SUBJECTED TO PUBLIC CENSURE AND STIGMATIZATION THAN THE AVERAGE BANK ROBBER. THE PROBABILITY OF DETECTION VARIES GREATLY WITH THE TYPE OF OFFENDER. FIRST, THE LARGE GROUP OF LABORERS AND EMPLOYEES WHO HAVE THEIR TAXES AUTOMATICALLY DEDUCTED FROM THEIR WAGES HAVE LITTLE OPPORTUNITY FOR TAX OFFENSES; OFFENDERS ARE USUALLY DETECTED IMMEDIATELY BECAUSE OF THE CLUMSINESS OF THEIR METHODS. SECOND, THE EMPLOYERS, ON THE OTHER HAND, WHO DETERMINE THEIR OWN INCOME TAX HAVE FAR BETTER CHANCES FOR UNDETECTED TAX EVASION. THIRD, AS A RULE, THE TRANSACTIONS OF CORPORATIONS ARE FAR HARDER TO CONTROL THAN THOSE OF INDIVIDUALS; CONSEQUENTLY, THE DARK FIGURES OF CORPORATION FRAUD ARE PARTICULARLY HIGH. FINALLY, BIG BUSINESS IS FAR MORE FREQUENTLY AND SUCESSFULLY INVOLVED IN TAX EVASION THAN SMALLER ORGANIZATIONS. IN CONCLUSION, THE TYPICAL REGISTERED TAX FRAUD USUALLY INVOLVES A BLUNDERING, MINOR OFFENDER, WHILE THE MORE SOPHISTICATED AND DANGEROUS WHITE-COLLAR CRIMINAL REMAINS UNDETECTED. THE ARTICLE CONTAINS STATISTICAL CHARTS BUT NO REFERENCES. --IN GERMAN. (SAJ)