Automated sales suppression device

Zapper is a term for software that changes in accounting systems, inventory control systems and above all cash registers, taxi meters and slot machines stored transaction and sales data later. This manipulation is done to the revenue reduction and thus to tax evasion and evasion of social security contributions. The term " Zapper " was first used by Prof. Richard Ainsworth.

  • 4.1 Affected criminal law
  • 4.2 Berufsrecht
  • 4.3 User
  • 4.4 developers, distributors and preparers
  • 4.5 Tax Consultants
  • 5.1 loss of tax
  • 5.2 general suspicion

Background and History

In industries with a high proportion of Barumsätzen many sales figures are manipulated. This happens, for example, by a change of data in cash registers. The Federal Court has already stated in his remarks to the 2003 budget and economic leadership of the Union, that the (then) new generation of cash registers did not meet the requirements of a proper accounting. Unless include the reports of the cash registers only sum values ​​(eg total sales per day), these manipulations are relatively easy to make (eg, due to cancellations ). The tax authorities require for this reason the submission of individual transactions in electronic form ( in Germany by an application of the Principles of Data Access and Verifiability of Digital Documents (GDPdU ) on cash registers ).

Since manipulations by hand are complex and can be detected relatively easily by analytical methods (eg numeric analysis as the Benford's or Chi -square test and by deviations from statistically expected distributions ), software has been developed for automated manipulation of data.

Several cases of zapping software are known. The software was partly written by the manufacturer of cash registers or their software, in part, it was developed by a third party. The biggest event in Germany relates pharmacy software. A press report says that alone in the Canadian province of Quebec 31 zapper programs were found on 13 different types of cash registers. The problems, solutions, and especially the alarmingly high loss of tax revenue - but only for the sales tax - are in the retrievable in German language OECD - comprehensively report.

From zapper software is only spoken when complex manipulation of data can be performed with largely automatic. Systems in which, for example, a counter of cancellations is omitted in the expression by parameter changes or a training mode for the regular work is used, do not belong in the category of the zapper software.

In the case law and literature is primarily the term " manipulation software " is used. In press articles also does nice talk about " cheating software ".

Technology

With PC-based cash registers the database used is most directly altered in non- PC - based systems, eg the dataset of a PC analysis software manipulated. The Zapper software can be integrated into the product, or for camouflaging be separated from it. It has been partially disguised as a game in which suddenly the manipulation functions are usable in the top level.

Two documented in the literature examples:

  • Zapper with a PC-based POS ( " open" system ): In this system, an SQL database is used. With a separate program that database can be changed. The program is at first glance a software for the analysis of sales data. By clicking on a displayed quantity value, the sales quantity of the corresponding product can be reduced to a user defined value. But are the changes in sales volumes across multiple transactions that contain the corresponding product distributed. During the manipulation of an overview of the original and the changed revenue is displayed. From the modified database, the POS software then later created the reports and presented at an outside test data.
  • Zapper ( "closed" ) with a proprietary system: In this system, the data from the fund are taken daily in a back office software. The zapper is a component of the software and is activated by a USB stick with a particular file. By clicking in a certain area is not visible to the Zapper function is called. After specifying a monetary amount to be shortened, an automatic adjustment of the stored transactions to achieve the target value.

Measures to prevent and detect tampering

Technical fuses

The use of zapper software can be difficult by technical measures or make practically impossible. This is mainly to fiscal memory systems or newer methods such as INSIKA. The city of Hamburg even promotes the purchase and installation of equipment, which are likely to secure data generated in the taximeter unchangeable and transfer to external storage media.

Monitoring measures

If no technical countermeasures are available, there remains only the approach through the analysis of sales data in the context of audits to discover zapper. The usual electronic audit has to be supplemented by other controls in order to detect the use of a zapper. This may on the one hand be the random check of the documents. Another approach is the call for submission of various data ( sales file consisting of the cash line, the individual data and the motion file from the ERP system ).

Use of experts

In concrete suspected cases a forensic examination will take place. If necessary, the tax investigation experts switches on it.

Legal situation in Germany

Affected criminal law

  • Tax evasion gem. § 370 AO
  • Withholding of social security contributions
  • Evidence suppression acc. § 274 StGB
  • Falsification of technical records

Berufsrecht

  • In commercial activities due to unreliability according to § 35 Industrial Code
  • Revocation of the tax concession under PbefG
  • Revocation of approval among pharmacists

User

Since the use of a zapper software suggests a tax evasion, each user must reckon with appropriate control measures. By using a zapper correct accounting is acc. § 158 AO refuted and thus there is the possibility to add one estimate gem. § 162 AO. Also, the withdrawal of a business license or concession pursuant to tax unreliability is possible.

Developers, distributors and preparers

The development, distribution and installation of zapper software fulfills the offense of abetting tax evasion (although this in Germany no directly applicable judgments exist). Also, the technician who installed a zapper on site, makes himself the facilitation of tax evasion prosecution. It should be noted that this aid is not only criminal, but according to § 71 AO also leads to a joint liability for the evaded taxes and interest arising thereon.

Tax consultant

White a tax advisor or the specific clients machined clerk in the tax office that the client uses a zapper, he may so edit bases of taxation not provided with his authority and submit a tax return. This solves their own culpability gem. § 370 AO from the tax consultant and / or expert assistants as a tax evaders need not be the tax debtor. In addition, the tax liability accesses acc. § 71AO when the client can not pay the tax debt or wants and enforcement by the tax office, for example, due to insolvency is unsuccessful.

Follow

Control failure

There are no estimates for Germany, in magnitude and incidence of tax losses by manipulating software. An estimate of the financial authority of Québec is based on a tax in the amount of $ 425 million only in restaurants and only for the province of Quebec (about 8 million inhabitants ) and again at a comparable level for the payable to the state taxes from Canada - on the basis of population would be transferred to Germany meet the more than 6 billion euros.

As a result of the BMF letter of 26 November 2010 No. of transactions are to be archived, is from a rising share of tax reductions that are made by manipulation software to start. The effort to uncover by audit and tax investigation evasion to estimate the correct taxes and prosecute the criminal involved is therefore also rise. Among the aspects of the red tape and tax justice appears therefore from a legal policy perspective, a systematic manipulation protection by methods such as INSIKA as the only viable solution.

General suspicion

Following the discovery of zapper software, the tax authorities focus in tax audits on a regular basis to all users of the affected cash registers or software solutions or even entire industries (such as from the year 2010 to pharmacies).

Revealed cases

Selection of cases was reported publicly verifiable. As the year the year of discovery is indicated in each case.

Swell

  • Erich Huber: About cash registers, phantom -ware, Mix and fiscal solutions from Germany and Austria. In: The tax audit. No. 06 to 12, 2009.
  • Erich Huber: ÖStZ Special - cash registers and POS systems in tax law. LexisNexis Austria, in 2012.
  • Daniel Schönwitz: Zapper, tugs, trickster. In: impulse. No. 11 of 2012.
  • Nasty tricks with revenue -lowering agents. Financial Times Germany, November 7, 2012, archived from the original on June 15, 2013, accessed on 19 November 2012.
  • Richard T. Ainsworth: Zappers - What's New Coming Fraud & New Enforcement. Southeastern Association of Tax Administrators, July 23, 2012, accessed on December 5, 2012 (PDF, 1.2 MB).
  • Revenue reduction by electronic POS systems: A threat to tax revenues. OECD, February 18, 2013, accessed on 27 June 2013 ( PDF, 3.1 MB).
Fiscal memory devices
835211
de