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Sales Tax

Sales tax is often manipulated in several financial crimes, but principally in undercharging and in the smuggling of goods. Local and state sales taxes go unpaid, robbing the government of millions of dollars in potential revenue. As a result of unpaid taxes, local governments may choose to impose higher property taxes, whereas county and state governments might increase income taxes, to help pay for education or public safety.

Undercharging schemes are rampant in the Unites States. The classic example involves a storefront failing to give receipts to customers making cash purchases. The business might make change, bag the product, and provide excellent customer service. However, many cash registers can be opened without keying in a sale. In these cases, the sales clerk may open the register ...

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