Summary

R. Papaskiri’s article – “The role of securities in the budget in increasing tax revenue” – studies an issue about recognition and non-recognition as a fraud of the fact of artificial increase of income by a company. The article proves that such action should not be considered as a fraud in Georgia so far as artificial increase of income will increase an income tax with the company and by this action the company gets loss instead of profit.

And with large corporations abroad is just the contrary: though artificial increase of incomes increases their taxable base but extends their investment attractiveness.

Keywords: Financial fraud, Taxable base, Stock market, Double-entry bookkeeping