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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

tax evasion  

Definition 1.

Illegally avoiding paying taxes, failing to report, or reporting inaccurately. The government imposes strict and serious penalties for tax evasion. Tax evasion is different from tax avoidance, which is making use of legal methods to minimize a tax burden.
 

Definition 2.

Illegal by reducing tax burden by underreporting income, overstating deductions, or using illegal tax shelters.
 

Definition 3.

An illegal practice whereby an individual intentionally avoids paying their true tax liability. Anyone caught evading taxes is generally subject to criminal charges and substantial penalties.
 
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