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Zappers - Technological Tax Fraud In New Hampshire, Richard Thompson Ainsworth
Zappers - Technological Tax Fraud In New Hampshire, Richard Thompson Ainsworth
Faculty Scholarship
No other State is as vulnerable to Zappers as is the State of New Hampshire. Zappers and related software programming, Phantom-ware, facilitate an old tax fraud – skimming cash receipts. In this instance skimming is performed with modern electronic cash registers (ECRs). Zappers are a global revenue problem, but to the best of this author’s knowledge they have not been uncovered in New Hampshire. Seen from a global perspective however, it seems unlikely that they are not here.
New Hampshire’s fiscal vulnerability to Zappers comes from its heavy reliance on precisely the industry segment that has been found to be …
Sales Suppression: The International Dimension, Richard Thompson Ainsworth
Sales Suppression: The International Dimension, Richard Thompson Ainsworth
Faculty Scholarship
Sales transaction taxes are highly susceptible to technology fraud, which is an inevitable result of today’s widespread reliance on technology to document taxed transactions. Technology can be (and is) manipulated to defeat the collection of these taxes. Both the U.S. retail sales tax (RST) and the European value added tax (VAT) are vulnerable to technology-based fraud. This Article concerns sales suppression — intentionally not recording sales — in the RST, and at the final stage of the VAT, the retail stage, when tax is collected from final consumers.
The modern electronic cash register (ECR)/point of sale (POS) system is vulnerable …