A new technology called “zapper” enables a cash register to create a second false record of all transactions allowing under-reporting of sales receipts by retailers. Now the tax man is paying attention and use of the hardware and software may be illegal.
The program tricks tax authorities with a second set of books that look convincing. Zappers, have already been banned in 20 states.
The use of zappers is illegal and may be subject to criminal penalties. However, according to a New York Times report, governments worldwide have yet to find effective means of prosecuting their use.
In those states where they are being used, the losses in sales and income taxes has been reported as significant.
Jeffrey Newman represents whistleblowers.