XTND was appointed by an international organisation to conduct a financial investigation and audit. On the surface, everything looked fine and they had all the required policies and procedures with their controls in place. During the investigation, XTND encountered a significant issue regarding the directors of the organisation being involved with tax evasion. Tax evasion is an illegal practice involving the deliberate concealment of income or the misrepresentation of financial information with the purpose of not paying taxes. The directors of this organisation were transferring funds from their main business to organisations registered in their names – a tactic designed to reduce their tax liabilities. A portion of their compensation was paid into the bank accounts of their organisations in addition to their monthly compensation. This strategy obscured their actual income, allowing them to evade taxes and violate corporate governance standards.
