find the probability that a taxpayer who does take extra deductions intentionally will deny it.

1 answer

Determining the probability of a taxpayer denying intentionally taking extra deductions requires subjective information and motives that cannot be accurately measured or quantified. It heavily depends on the individual's personal ethics, risk tolerance, fear of legal consequences, and other factors that are difficult to predict or generalize.

However, it is important to note that intentionally denying or concealing extra deductions is considered tax fraud and is illegal. Taxpayers are legally obligated to report all income and accurately deduct applicable expenses based on the tax laws of their respective countries. The consequences of tax fraud can include financial penalties, fines, imprisonment, and damage to personal and professional reputation.

If you suspect or know of someone engaging in tax fraud, it is recommended to report it to the appropriate tax authorities so they can investigate the matter further.