In a bid to crack down on tax evaders, Italian tax authorities have found a new way to catch tax evaders. They are using “cash dogs”, dogs trained to sniff large currency notes, to seize black money being carried at airports by travelers. This innovative method to catch tax evaders has reaped results. In the first seven months, the Italian tax authorities seized as much as $47.6 million in cash, silver and gold from travelers at different airports.
This is a cost-effective method to deal with tax evasion. The Labradors used for the job are happy with a rubber ball as reward.
During the check at airports, currency notes were found hidden in places such as shoe heels, cigarettes, underwear and tampons. Without the dogs, it would be difficult to recover money from such unlikely places.
After the success of this innovative initiative by the Italian tax authorities, tax authorities of other countries may also implement this method to catch tax evaders and discourage movement of illegal money in, out and around their countries.
The United States lost $3 trillion to tax evasion in the past decade. Along with other methods of curbing tax evasion, the IRS may also use “cash dogs” to seize unaccounted money being circulated around the country and taken to foreign lands.
Along with the IRS, any amount of success in curbing tax evasion is good news for American taxpayers, as they are the ones who pay additional money in taxes to the government every year due to tax evasion. It is time innovation is introduced and furthered by the IRS to increase tax compliance.