Tax Evasion

Tax evasion is the term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reduce their tax liability and includes dishonest tax reporting, such as declaring less income, profits or gains than the amounts actually earned, or overstating deductions.

Tax evasion is an activity commonly associated with the informal economy. One measure of the extent of tax evasion (the "tax gap") is the amount of unreported income, which is the difference between the amount of income that should be reported to the tax authorities and the actual amount reported.

In contrast, tax avoidance is the legal use of tax laws to reduce one's tax burden. Both tax evasion and avoidance can be viewed as forms of tax noncompliance, as they describe a range of activities that are unfavorable to a state's tax system, although such characterization of tax avoidance is suspect, given that avoidance is lawful, within self-creating systems.

Read more about Tax EvasionEconomics of Tax Evasion, Evasion of Customs Duty, Evasion of Value Added Tax (VAT) and Sales Taxes, Government Response, United States, See Also

Other articles related to "tax evasion, tax":

Tax Haven - Modern Developments - Liechtenstein Banking Scandal
... arrests followed relating to charges of illegal tax evasion ... tax authorities, but the British government paid a further £100,000 for the same data ... However, regardless of whether unlawful tax evasion was being engaged in, the incident has fuelled the perception amongst European governments and press that tax havens provide ...
Taxation Of Illegal Income In The United States - Notable Cases
... Historically criminal prosecution for tax evasion has been used to prosecute criminals who could not be prosecuted otherwise ... Al Capone was successfully prosecuted for tax evasion ... million cash for his espionage, was also charged with tax evasion as none of the Soviet money was reported on his tax returns ...
Tax Evasion - See Also
... Tax amnesty Tax avoidance Tax noncompliance Tax information exchange agreements Taxation as theft tax resistance History of tax resistance ...
Abe Saffron - Tax Evasion
... Australian Taxation Office, Saffron was found guilty of tax evasion ... fabricated with the intent of evading tax by falsifying income ...
Church Of God Preparing For The Kingdom Of God - Founder - Tax Evasion Trial and Imprisonment
... by a federal grand jury on five charges of tax evasion ... he had understated his income on federal tax returns, redirected COG-PKG church funds for personal use and concealed the existence of a Swiss bank account ... his was one of the two names on the account, but denied that there was any tax evasion, and stated that all funds had since been repatriated to the United States and used for church advertising ...

Famous quotes containing the word tax:

    In 1845 he built himself a small framed house on the shores of Walden Pond, and lived there two years alone, a life of labor and study. This action was quite native and fit for him. No one who knew him would tax him with affectation. He was more unlike his neighbors in his thought than in his action. As soon as he had exhausted himself that advantages of his solitude, he abandoned it.
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