Under Reporting

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Under Reporting

The act of deliberately understating personal income or corporate earnings. One usually underreports in order to pay less in taxes. For example, if one makes $50,000 in a year and reports $35,000, one does not pay taxes on the extra $15,000. Underreporting is illegal because it deprives the government of tax revenue.

Occasionally, underreporting refers to an illegal practice in which a company refrains from reporting earnings in one quarter in order to report them the following quarter. Companies usually do this to drive up the stock price.
References in periodicals archive ?
Contract notice: Assessment of tuberculosis under-reporting through inventory studies.
It is aimed at women aged between 16 and 35 and hopes to tackle under-reporting by raising awareness that people can, and should, report all behaviour that makes them feel uncomfortable and that the police will seek to take action as a result.
In particular, we provide estimates of risky drinking both before and after making adjustments using a recently published methodology that corrects for under-reporting in surveys.
On April 29, 2015, IBP was the subject of an article on Seeking Alpha which stated that numerous red flags existed at the Company, including (1) misrepresented financials; (2) subtle alterations of earnings definitions; (3) overstated cash flow; (4) related party conflicts of interest; (5) margin goals that appear disconnected from the company's economic model; (6) poorly disclosed litigation accusing the company of systematically under-reporting hours worked; (7) violations of the Fair Labor Standards Acts, and (8) earnings estimates that have consistently been revised lower.
Competition from the shadow economy, where companies are usually not registered or seek to avoid taxes by under-reporting revenues, employee numbers or the wages they pay, remains a key obstacle for small and medium enterprises, the report said.
Auto Business News-January 9, 2015--Honda to pay USD70m in fines for under-reporting warranty claims
The organization warned that the second week of low numbers could be due to under-reporting of cases.
Health Secretary Alex Neil ordered the independent review in June to urgently report on all issues related to mesh implants - including complication rates and under-reporting of problems - after he questioned the official figures.
Det Supt Louise Raphael said rape reports had risen in the past year adding: "This is a positive trend given that, historically, the levels of under-reporting are unacceptably high.
Despite the various allegations asserted, the payroll records made it clear that there was no class-wide policy to require under-reporting of hours worked, the ruling said.
And it will tell people what services are available for victims, address the under-reporting of hate crime and promote the benefits of diversity.
Twenty per cent of acute NHS trusts in England have been agged by health ocials for under-reporting patient safety incidents, including events that cause severe harm or even death.