Tax Evasion

Tax evasion is the illegal act of not paying taxes owed to the government by deliberately misrepresenting or concealing information. It can involve underreporting income, inflating deductions or expenses, or hiding money and assets in offshore accounts. Tax evasion is a criminal offense and can lead to severe penalties, including fines and imprisonment. It differs from tax avoidance, which refers to legally exploiting tax laws to minimize tax liabilities. The primary aim of tax evasion is to reduce tax bills by dishonest means, making it a serious violation of the law that undermines the integrity of the tax system.