What is Tax Evasion?

What is Tax Evasion?
It is an illegal and irresponsible behavior whereby the taxpayer violates tax laws and falsify records, in order to avoid or underpay tax due.

Types of Tax Evasion:
There are many ways that tax evaders take to reduce taxable income, and thus reduce the amount of tax they are owed. A tax evader may use one or multiple ways of tax evasion at the same time. Below are the most popular tax evasion ways:

  • Failure to report all sources from which income is obtained in case there is more than one source.
  • Submitting incorrect numbers in the accounting records that do not reflect the actual amounts.
  • Intentionally combining personal and business expenses of an organization.
  • Attempting to inflate various expenditures and expenses with the aim of reducing taxable income.

Have you encountered any of the above and would like to report it? Click