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Tax Scam: Legitimate Refund Email or Fake Refund Messages

Tax Scam: Legitimate Refund Email or Fake Refund Messages
Article Defines What are Tax Scams & Types, Victims, Case Studies, Finally – 2019 Prevention Tips to Avoid Such Tax Scams.

 

In the past, from the income tax department, we must have received a refund. When taxes paid are higher than your actual tax liability refund arises. For taxpayers, the refund is often a pleasant surprise.

What are Tax Scam and Types?

You may receive a scam calls offering you a tax refund. Thus, it asks you to provide sensitive data such as bank or credit card details over the phone. In addition, the scammer also sends links in the messages. These links will send you to a website where it will ask you to input personal information. Consequently, malware spreads which lead to theft of identity and/or money theft.

Type 01: Fake Refund

Nowadays, phishing scam has arisen which assures a refund for tax returns shared via SMS. You get a message sent via SMS. It claims to offer a fairly high amount of IT refund to you. The message includes a link. This link directs you to a special page. Thus, on this page, in order to complete tax refund details, it asks you to enter their credit/debit card details.

Yesss, You could not Retrieve your money or pain!

But You can Still, Alert your fellow citizens with your painful experience regarding a Visa Fraud.

Isn’t It?

Who knows, The next victim might be from one of your Family, Friend or a Client. Don’t let it Go Away!

Now, Its time to Report a Fraud

Victims of Tax Scams?

  • Frequent taxpayers, especially online taxpayers.

Case study: Vodafone Tax Dispute

Vodafone wanted to enter the Indian market in 2007. In two ways this was possible: Firstly, by making its own infrastructure, opening branches across India, recruiting its workers etc.

Secondly, buying a company which is already set up at a reasonable rate.

They purchased Hutch Essar, India at 55000 crores. Before leaving, Hutch had to give Capitals Gain Tax to Indian Government which is 33% of its value i.e, 12000 crores.

Consequently, to avoid that tax they opened an intermediary company at a distant location which contains the shares (67%) of Hutch Essar, India. Thus, instead of purchasing Hutch, India, Vodafone purchased that intermediary company located at Cayman’s Island known as CGP investment Holding. Its parent company is Hutchinson Hongkong, (Hutch, India also comes under it).

In India, Vodafone took place of Hutch Essar, India. The government then asked them for tax. Vodafone was operating from an intermediary company in the Netherlands. They said that they didn’t purchase Hutch Essar, India. They purchased CGP Investment Holding at Cayman Island where there are 67% shares of Hutch Essar, India in it. So they are not liable to tax in India.

Indian Government filed a case against Vodafone India at High Court which it won. But, it lost that case in Supreme Court.

Our acts of the constitution were revised further (IT Act Clarification 2012) such that no such event takes place in the future. The government faced a loss of 12000 crores by this company.

Summary

It is difficult to control ourselves from clicking on the message with a tax refund.

Don’t click on the forwarded link or post, or blindly trust the refund offered to you.

Prevention Tips: To Avoid Tax Scam?

  • You must file tax return early.
  • Make use of strong passwords to safeguard personal information.
  • Ignore email and phone calls which asks you to provide your personal information.
  • Protect your device with update antivirus as you visit the income tax website with your sensitive information.

Yesss, We Defend Frauds could not Retrieve your money or pain!

But We can Still, Alert your fellow citizens with your painful experience regarding this Fraud.

Isn’t It?

Who knows, The next victim might be from one of your Family, Friend or a Client. Don’t let it Happen!

Now, Its time to Report a Fraud

 

 

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