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Back duty
 

 

Tax payable on income undisclosed at the time earned. The attitude of the Inland Revenue to tax evasion is severe - particularly when indulged in over a long period and where large amounts of tax are involved. In reclaiming tax the Revenue can go back as far as it wishes and has powers to demand considerable documentation and explanations. The law varies from time to time but normally, in back duty cases, defendants become liable for payments far in excess of the amount originally evaded and well above interest normally payable on overdue tax. This is by way of a penalty for their offence. In extreme cases they may also be imprisoned.

Reference: The Penguin Business Dictionary, 3rd edt.