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

Tax evasion is a crime in almost all countries and subjects the guilty party to fines or imprisonment.

Frequently Asked Questions

• What Is Tax Evasion?
  Tax evasion is the deliberate failure to pay taxes.  Sometimes tax evasion is done by claiming a reduction or elimination of a tax liability.  It is not necessary for the conduct to be … more