Archaeologists Find Proof of Ancient Tax Fraud
Ancient tax fraud evidence proves tax cheats have been out to evade government laws going all the way back to the Roman Empire. But if you think IRS punishment is harsh, the old-school penalties were even more severe.
Ancient Tax Fraud Uncovered
Archaeologists digging in Turkey have found proof of ancient tax fraud dating back 1,600 years. Scientists recently uncovered stone tablets providing more information on a particular case that researchers have been digging into since the 18th century.
According to the research, around 465 AD citizens started sending complaints to Roman higher-ups about tax officials in the western Asia Minor region of the empire. It seems tax functionaries were issuing payment receipts without recording the actual, correct totals. They then reported lower numbers to the Roman imperial treasury in Constantinople. After that, the fraudsters pocketed (or put in their purses, since togas didn’t have pockets) the difference.
The Roman Response
Pretty blatant, eh? Despite that, it still took Rome about 15 years to do something about it. A Praetorian Prefect sent a special envoy to solve the corruption problem. He threatened to seize the envoy’s estate if the situation wasn’t handled satisfactorily. What’s more, the Prefect declared (in stone, no less) that anyone convicted of this type of tax fraud would be sentenced to death.
The severe penalty, beyond punishing the theft, was designed to send a message, archaeologists think. That is, anyone challenging the Roman emperor’s will was guilty of a kind of rebellion, presenting an abominable affront to his authority.
What about modern-day tax frauds in the USA? Here are some of the penalties they can face:
Criminal Penalties
- Tax Evasion: Up to 5 years in prison and fines up to $250,000 for individuals.
- Filing a False Return: Up to 3 years in prison and substantial fines.
- Failure to File or Pay: Up to 1 year in prison per year of failure plus monetary fines.
- Restitution: Defendants must pay the costs of prosecution alongside all unpaid taxes.
Civil Penalties
- Fraud Penalty: A flat 75 percent penalty added directly to the portion of the underpayment caused by fraud.
- Interest and Fees: Compound interest builds daily on top of unpaid taxes and penalties until fully resolved.
- No Statute of Limitations: The IRS can audit and assess penalties indefinitely for fraudulent returns.
Links
For more on tax evasion in ancient Rome, there’s this article in Haaretz.
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