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{{short description|Software that falsifies cash register records}}
An '''automated sales suppression device''' or '''zapper''' is a [[software]] program that falsifies the electronic records of [[point of sale]] (POS) systems for the purpose of [[tax evasion]].

==Function==
Most jurisdictions levy a [[sales tax]] or a [[value added tax]] on commercial transactions such as sales in stores or food served in a restaurant. These transactions are now most often recorded by a POS system rather than a mechanical [[cash register]]. The POS system records are generally not alterable by the operator and are used as the basis of tax assessments and audits by tax authorities.

Because POS systems are increasingly designed as general purpose [[computer]]s (as of 2008, 85% worldwide were reported to run [[Microsoft Windows]]),<ref name="NYT">{{cite news|url=https://www.nytimes.com/2008/08/30/technology/30zapper.html|title=With Software, Till Tampering Is Hard to Find|last=Furchgott|first=Roy|date=August 29, 2008 |work=[[The New York Times]]|accessdate=2008-09-02}}</ref> arbitrary software can be run on them. A "zapper" is a software program, often run untraceable from a [[USB flash drive]], that accesses the POS system records and allows the owner of a business to alter the records so as to make it credibly appear that fewer transactions have occurred than has actually been the case.

The use of "zappers" reduces the tax burden on the business, which is generally proportional to the volume of the transactions. It also allows the business to withhold any [[sales tax]] or [[value-added tax]] that would be owed to the government for the suppressed transactions, and to keep this money for itself.

==Government responses==
The use of zappers is illegal and may be subject to criminal penalties. However, according to a 2008 [[The New York Times]] report, governments worldwide have yet to find effective means of preventing their use.<ref name="NYT"/> A [[European Union]] committee on cash register fraud has been established, and legislation mandating tamper-proof POS systems has been proposed in [[Germany]] in 2008 ([[INSIKA]]) and introduced in [[Quebec]], Canada, on September 1, 2010.<ref name="NYT"/>

In Canada, legislation aimed at suppressing zappers is in effect since 1 January 2014. A first offence will lead to a [[Canadian dollar|$]]5,000 fine, and subsequent infractions to a $50,000 fine. Persons in possession of zappers could be fined up to $50,000, and developers or sellers up to $100,000.<ref>{{cite web|url=http://www.ctvnews.ca/canada/canada-s-new-rules-here-s-what-changed-for-2014-1.1615034|title=Canada's new rules: Here's what changed for 2014|publisher=[[CTV News]]|accessdate=2014-01-02|date=2014-01-02}}</ref>

In Australia, activities involving electronic sales suppression tools that relate to people or businesses that have Australian tax obligations are banned since 4 October 2018, and subject to criminal and administrative penalties.<ref>{{cite web|url=https://www.ato.gov.au/General/Gen/Ban-on-electronic-sales-suppression-tools/|title=Ban on electronic sales suppression tools|publisher=Australian Taxation Office|accessdate=2018-10-16|date=2018-10-16}}</ref>

In Russia, the electronic secure memory device (EKLZ) was made mandatory to be part of any cash register. Then, new online cash registers use a combination of the special secure fiscal storage and the immediate transmission of the data to the tax service. These measures make it impossible to remove the data from the memory of the cash register.

In 2021, the state of Massachusetts drafted provisions into their budget<ref name="IV. Penalties Relating to Automated Sales Suppression Devices or Phantom-ware">{{cite web |title=Technical Information Release Tax Provisions in the Fiscal Year 2021 Budget |url=https://www.mass.gov/technical-information-release/tax-provisions-in-the-fiscal-year-2021-budget |website=mass.gov |access-date=11 March 2021 |ref=iv-penalties-relating-to-automated-sales-suppression-devices-or-phantom-ware}}</ref> establishing penalties for the use of selling, purchasing, installing, or possessing zappers. Selling (or offering for sale) zappers will incur a fine of up to $25,000 for the first offense and up to $50,000 for subsequent offenses; purchasing, installing, or possessing a zapper will incur a first-time fine of up to $10,000, and up to $25,000 for subsequent offenses.

==References==
{{reflist}}

== External links ==
*[https://www.oecd.org/ctp/crime/ElectronicSalesSupression.pdf Electronic Sales Suppression: A threat to tax revenues], [[OECD]]

[[Category:Retail point of sale systems]]
[[Category:Tax evasion]]

Automated sales suppression device - Revision history

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