The Tax Authorities worldwide regards the use of fictitious invoices as a plague. The Tax Authority in Israel estimates that fictitious invoices crimes – criminal tax crimes, deprives the state treasury – hundreds of millions of shekels, each year. According to the Israeli Tax Authority, this method is easy to use and difficult to detect.
What is Invoice ?
The term invoice refers to a commercial document sent and itemizes and records a transaction between a buyer and a seller. If goods or services were purchased on cash, the invoice usually specifies the terms of the deal and provides information on the available methods of payment.
The invoice contains details regarding the transaction, such as:
- Name and contact information of the business;
- The items sold – description about the item, type and number ;
- Price + VAT.
- Date of purchase;
- Other information regarding the goods or item/s.
What is false Invoice or fictitious invoice?
Invoice that contain any false, fake, or fraudulent information, could serve as grounds for an invoice fraud case for services or goods not rendered – causing companies to overpay or pay to someone who never offered any goods or services.
Few examples include :
A false invoice: if someone tries to charge for goods and services that never received.
Duplicate Invoice: A duplicate invoice is an invoice sent to the buyer more than once. It happens a lot with companies in the construction industry for example when a subcontractor sends duplicate bills to contractor.
Inflated Invoice: Inflated invoice is an invoice with higher price than the cost of the service or goods listed in the invoice or are higher than agreed upon sums. invoice charges more, suggesting invoice fraud.
If one of the above happened in your company or in your business you need to advise with White Collar Lawyer and a Tax Lawyer specializes in the representation of suspects and defendants in various tax offenses and advises clients from the consultation stage before the various tax authorities, building a strategy and a forward-looking defense line, representation at the hearing stage before filing an indictment and litigation in criminal cases after filing an indictment; offenses under the Income Tax Ordinance, offenses under the Value Added Tax Law, customs offenses, etc.