In both developing and developed countries, every individual and company are obliged to pay tax. Paying tax enables the nation to get revenue which is in return used to run various programs such as electrification, provision of quality health care services, and construction and maintaining of roads. Actually, in most countries, taxation is the major source of income for the government. For this reason, it is unlawful for any individual or company to fail to pay tax, and anyone who is found guilty of this offence faces heavy punishment, including imprisonment, payment of fines or both. Precisely, if any individual or organization is accused of tax evasion, forensic accounting investigations are conducted in order to gather evidence that he or she have really failed to comply with tax compliance regulations. There are numerous cases where organizations and even individuals have been found guilty of tax evasion as it is discussed in this paper. In the United States, the government went to an extent of ensuring that Americans working outside America also pays taxes, as stipulated in the tax regulation policy. This paper discusses the analysis of tax compliance regulation.
There is a myriad of instances where the tax compliance regulation has been applied in the civil or criminal case. However, the application of this regulation may be involving a single individual or an organization.
In June 2012, the U.S. Department of Justice announced that two of the Crayman Companies, Crayman National Trust Co. Limited and Cayman National Securities Limited, which used to offer trust management services as well as investment brokerage to the American individuals and entities were guilty of tax evasion. These two companies pleaded guilty to charges levied against them involving the companies` aspect of conspiring with clients so as to conceal taxable amounts from the tax regulatory body (Wood, 2016). Precisely, these two Cayman organizations colluded with and assisted some of its clients to open secret accounts which were hidden in fake companies that the Cayman organizations were operating. In addition, the management of these organizations then faked the ownership of these secret accounts and allowed individuals whom they had registered to participate in the U.S. security exchange deals even without the necessary documentations. After pleading guilty, the two Cayman firms were mandated to pay approximately $6 million as penalties of these charges.
On 20th September, 2016, Leo Glodzik of Wilkes-Barre was charged in Scranton Pennsylvania for 30 months in prison on numerous charges which were not limited to the illegal gun possession, mail fraud, and filing a false disclose of his taxable income. Following these charges, former towing chief was mandated to pay nearly $300,000 as penalties and tax besides being imprisoned for 30 months. According to the evidence produced in the court of law, Glodzik`s organization, “LAG Transport Incl. (LAG) had entered into a