Document Type
Working Paper
Publication Date
10-2016
Language
en-US
Abstract
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 the “hot bed” of this fraud – the restaurant industry. In the most recent fiscal year the Meals and Room Tax (M&RT) trailed only the Business Profits Tax (BPT) in revenue yield ($206,726 to $317,439 million). Taxes on meals approximate 70% of the M&RT. As a result, when tax fraud arises in this industry segment it is a significant concern.
Recommended Citation
Richard T. Ainsworth,
Zappers - Technological Tax Fraud in New Hampshire
(2016).
Available at:
https://scholarship.law.bu.edu/faculty_scholarship/1422
Included in
Banking and Finance Law Commons, Business Organizations Law Commons, Criminal Law Commons, State and Local Government Law Commons, Taxation-State and Local Commons, Tax Law Commons
