Typically they will just lie about sales right, so couldnt tax authorities just monitor the number of people going in and out of businesses where they can track easily sales from the outside?(for example barber shop) Then they could just shut down the operation easily by proving fraud? I might be stupid here but it doesn’t make sense to me
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That can happen, but the authorities would only do so if they had a reason to suspect something in the first place. They don’t audit every new business. That would take a lot of time and money for very little reward.
As long as the business doesn’t seem suspicious, they aren’t going to get that sort of scrutiny.
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