Corporate Tax Evasion A growing trend in our society today is corporate tax evasion. It has become increasingly common for businesses to pay little or no income tax and in some cases actually receive a refund from the government. It is illegal and therefore deviant from that definition. Corporate tax evasion (using borderline legal means) is widespread. White-collar crime is a term that is usually applied to business-related crimes that do not involve violence or bodily injury to another person. Corporate tax evasion falls into the category of white collar crimes. There are 3 types of corporate income taxes as follows: National 30% of taxable income, Local 20.7% of national tax and Corporate 10.08% of taxable income. The calculated effective tax rate is 42.05%, although their sum simply gives 46.29% (30.0% + 30.0%X20.7% + 10.08%). This is because business tax is only deductible for other tax purposes when it becomes due. Tax evasion involves fraudulent or criminal behavior, conduct that involves deception, concealment or destruction of documents. Tax evasion occurs when the taxpayer fraudulently or criminally avoids paying taxes otherwise due under tax laws. There are many tax crimes foreseen by the Revenue Code. Criminal violations cover the same territory as civil fraud penalties, although the government has a higher burden of proof in criminal cases. Criminal cases, however, reach a much broader spectrum of potential defendants. Unlike civil penalties that affect only the taxpayer, criminal penalties reach anyone who commits the defined crime, including employees, accountants, lawyers and tax preparers. Under the Sec. IRC 7206(2), a person is guilty... middle of paper... deviance is a learned behavior like all other social behaviors. When there is an excess of definitions favorable to deviance or violation of the law, deviance (or, in our case, corporate tax evasion) occurs. Differential association states that criminal behavior is learned by interacting with other people in a communication process and that the main part of learning criminal behavior occurs within intimate personal groups. Undoubtedly there may be a connection between the intimate settings in which decisions to commit tax evasion are made and the state definition above. When a people finds themselves in a small group context the person inevitably assimilates to the surrounding culture, in this case tax evasion. Bibliography: Construction of deviance; page 75, Edwin H. Sutherland http://www.ustreas.gov/press/releases/ps421.htm http://www.taxhound.com/