Businesses have been cheating, ahem…I mean suppressing, the amount due on sales tax for ages. Traditional methods of suppression include removing cash out of the till, not ringing up cash transactions and under-reporting of sales. In the digital age, software has supplemented most of these traditional methods. Using software to reduce tax liability is called “zapping”. Zapping can be done using software that is included with point-of-sale systems, using plug-in devices, or by using cloud-based “suppression as a service” providers.
It has been estimated that states are losing $1 billion in sales tax annually from cash-intensive businesses. XDS can help your state solve this problem. Contact us soon to find out how. In the meantime, here are some links that will help you get familiar with this costly topic:
NY’s sales-tax losses don’t register
Zappers – Technological Tax Fraud in New Hampshire
Pennsylvania’s Sales and Use Tax: Has Nearly $1 Billion Been “Zapped” Away in Fraud?
CALIFORNIA TAXES: ‘Zapper’ software for retail tax evasion an emerging concern
