UNAUTHORIZED HACKING

The term "computer hacking" traditionally describes the penetration into computer systems, which is not carried out with the aims of manipulation, sabotage or espionage, but for the pleasure of overcoming the technical security measures. In practice, this kind of offense can be frequently found. As far as damage is concerned, a differentiation must be made. In numerous cases, the attacked computer user is not actually harmed, but only endangered. Contrary to this, considerable damages occur in other cases especially when the perpetrators later use their knowledge for committing espionage and sabotage. In any case the "formal sphere of secrecy" or the integrity of the concerned computer systems is violated. Also it is very tough to draw a dividing line between what can be considered mild and what endangers life. Consider someone breaking into the online flight system of an Pakistan Airlines flight. He or she is definitely endangering the lives of those on board though it may have been done for fun's.

To get access and verify the record being hosting in remote services often requires the use of hacking to get access to records. The use of hacking as legal tools requires use of hacking soft wares with most modern technology and means employed to curb any evasion of tax and verify the e- record.

No specific statutory provisions are available for the defining the authorized hacking rights on the part of tax officer.

SECURITY AND PRIVACY ISSUES OF WEB HOSTING SITES

In numerous Western legal systems, the first "computer-specific" reforms of law during the 1970s and 1980s concerned the protection of personal rights and privacy in particular. The relevant legislation was a reaction to new challenges to privacy by the increasing possibilities of electronic data processing to gather, store, connect and transfer personal data. The traditional provisions for the protection of secrecy only covered part of the personality right and proved to be far too narrow for a protection against the new dangers. A differentiation in criminal data protection law which can be found in all countries today results from this historic development: Traditional offenses for the protection of secrecy (e.g. for doctors, lawyers or public officials) can still be found in the core of criminal law, i.e. the Criminal Code. Personal data receives indirect criminal protection by general criminal provisions that are not limited to personal data . We can therefore speak of an international wave of reform, which clearly shows the common problems of all national legal systems.

There are often Immunity is provided against disclosure of information relating to security procedure, no person shall be compelled to disclose any password, key or other secret information exclusively within his private knowledge, which enables his use of the security procedure or advanced electronic signature shall not confer any immunity where such information is used for the commission of any offence under any law for the time being in force.

The most formidable task is getting access to remote data is the shelter being provided by the remote hosting site for maintenance of the privacy and security of the database. The right to breach the security right as statutory is not possible in case of hosting of data at remote server, unless the tax payer be compelled to facilities the access to e-data.

AUTHENTICATING THE INTEGRITY OF BUSINESS RECORDS

With conventional commerce original records are paper-based and can be examined for the attributes of authenticity and integrity. Since, with e-commerce transactions, the original documents are stored in electronic form the comfort of physically viewing the originals knowing that they are unaltered does not exist. However, software is being developed to identify alterations to computer records. Specific accounting software may also be deployed for this purpose. Many of us in the workplace feel more comfortable with paper-based records. But is this comfort an illusion? Paper records can be altered, lost or falsified. So too can computer records. The fact is that we are familiar with the tools and procedures for checking paper records. Whereas, he tools for validating computer records are new and, perhaps, less intuitive. Revenue authorities are likely to reach a number of conclusions to do with this over the next few years:

* Computer audit means more and different training of staff.

* Once staff is trained, computer audit will have advantages over traditional audit in terms of speed, precision and flexibility. It will be seen as the only way to audit large companies, in particular.

* Computer audit will make it easier to examine both accounting systems and the records which go to make up those systems. Overall, it is not the fact that records are paper or computer-based that matters.

What matters for Revenue is that businesses more likely to perpetrate tax fraud are identified through correct risk analysis. This does not depend on the nature of the records as between paper-based and computerized. In conclusion, Revenue auditors will require a higher level of computer skills in future to allow accurate interpretation of computerized records systems. It will also be necessary for Revenue auditors to have systems analysis skills to validate the data models used in a given accounting environment. They will also need manipulation skills to accurately trace transactions through such systems. The computer software industry is aware of potential for loss of audit trail arising from business being conducted on the internet. As mentioned already, the industry is developing techniques to ensure the integrity of electronic records. An example of this is a technique called "message digests". A message digests works by attaching a unique message to an electronic record. Any subsequent change to the record can be detected by comparing the original digest with a newly created digest based on the current state of the file data. Once again we see an emerging overlap of interest between the public and private sector; both are keen for ecommerce to work well and both face common problems. The point has been well made that the private sector, particularly the auditing profession, has the same interest as tax auditors in safeguarding the integrity of e-commerce records. One area of focus is the impact of significant electronic processing of information on the auditor's ability to rely on substantive, observable evidence in the conduct of an audit.

FILING OF TAX RETURN OF E-BUSINESS AND FURNISHING EVIDENCE

Self-assessment relies on taxpayers voluntarily meeting their tax obligations. This concept is recognised in all tax statutes, which sets out taxpayers