Dogs Catch Tax Evaders

Last updated on October 9, 2021

Dogs are catching tax evaders at Italian airports, thanks to the new initiative by the Italian tax authorities in which they are using “cash dogs” to sniff large amounts of cash. The “cash dogs” have been trained to sniff cash, the smell of which is subtle. With the help of these dogs, the Italian police seized as much as $47.6 million in cash, gold and silver in the first seven months.

The dogs used for the crackdown are Labradors, as they are better able to smell currency notes. With the success of this innovative method to catch tax evaders, other countries may also use this method to control the transfer of cash around, and in and out of their country.

The U.S. government lost $3 trillion in the past decade due to tax evasion. The problem of tax evasion is one of the most common tax problems in the country. Along with other methods to stop and prevent tax evasion, the IRS may also consider using cash dogs to seize black money.

Using of cash dogs is beneficial in more ways than one. The dogs can sniff currency notes that are hidden at the most unlikely of places such as cigarettes, underwear, shoe heels and tampons. They have been trained to sniff large notes so that only large amounts of currency notes being carried by travelers are checked. Although training the dogs may take investment, the reward the dogs expect is only a rubber ball.

If this new method helps catch tax evaders and bring down tax evasion in the long run, it is good news for taxpayers who pay their taxes every year. Due to tax evasion, taxpayers pay additional taxes to the government. It is time the IRS may consider introduction of innovative methods to improve tax compliance.