Tax Evasion
Tax evasion is when someone has deliberately misled us about their activities to reduce their tax liability, or have not paid tax that is due.
tax evasion is escaping payment by illegal means. This is obviously unlawful and is usually a criminal offence
Tax evasion is when a person or a company purposefully underpays its taxes
Tax Evasion and Tax Avoidance
In a legal sense, tax avoidance must be distinguished from tax evasion. Tax avoidance means using whatever legal means possible to reduce the amount of money that a company or individual pays in taxes.
A taxpayer commits tax evasion, for example, when he or she:
- Knowingly does not keep the books and documents required to be kept by a tax law; or
- Knowingly does not provide information (including tax returns and tax forms) to the Commissioner or any other person when required to do so by a tax law;
and this taxpayer does so:
- Intending to evade the assessment or payment of tax by the person or any other person under a tax law; or
- To obtain a refund or payment of tax in the knowledge that the person is not lawfully entitled to the refund or payment under a tax law; or
- To enable another person to obtain a refund or payment of tax in the knowledge that the other person is not lawfully entitled to the refund or payment under tax law.
Criminal Offence
“Tax evasion”in this sense, in some countries, is therefore tantamount to fraud. It is, in such countries, a criminal offence. Further, as is to be expected in the case of a criminal offence, the legal standard for what will constitute “tax evasion”is reasonably clear. For example, in the United States, tax evasion is a criminal offense, a felony, under federal (Section 7201 of the Internal Revenue Code) and state legislation.
Error and Threshold
However tax evasion may be generally defined, in some countries, as any act designed to defraud the tax system, a simple error does not mean to be convicted for tax evasion. In general, the tax authorities must show that the taxpayer deliberately tried to underpay the taxes to start a criminal trial. In many countries, there is a threshold of tax fraud in order to become a criminal offense.
Some texts are extracted from “Improving the Operation of New Zealand’s Tax Avoidance Laws”
See Also
General Anti Avoidance Rule
Tax Avoidance
Financial Crime
Tax Fraud
Criminal Charges
Penny and Hooper case
Trust Taxation
Rule of Law
General Agreement on Tariffs and Trade
What is a Section 645 election?
Charity Trusts
Law binding
List of Tax Acronyms and Abbreviations
Trust Registration
Rules
Further Reading
Harry Ebersohn “Tax Avoidance and the Rule of Law”(paper presented to Legal Research Foundation Tax Avoidance Symposium, Auckland, April 2011).
Other Popular Tax Definitions in the World Legal Encyclopedia
- Adjusted Gross Income (sometimes, including Tax Evasion)
- Ad Valorem Tax (sometimes, including Tax Evasion)
- Alternative Minimum Tax (sometimes, including Tax Evasion)
- Big Four (audit firms) (sometimes, including Tax Evasion)
- Black Market (sometimes, including Tax Evasion)
- Capital Gain (sometimes, including Tax Evasion)
- Capital Gains Tax (sometimes, including Tax Evasion)
- Carbon Tax (sometimes, including Tax Evasion)
- Church Tax (sometimes, including Tax Evasion)
- Corporate Tax (sometimes, including Tax Evasion)
- Corporate Tax (sometimes, including Tax Evasion)
- Customs (sometimes, including Tax Evasion)
- Deferred Tax (sometimes, including Tax Evasion)
- Depreciation (sometimes, including Tax Evasion)
- Dividend (sometimes, including Tax Evasion)
- Employer Identification Number (sometimes, including Tax Evasion)
- Estate Tax (sometimes, including Tax Evasion)
- Excise (sometimes, including Tax Evasion)
- Fiscal Policy (sometimes, including Tax Evasion)
- Fiscal Year (sometimes, including Tax Evasion)
- Flexible Spending Account (sometimes, including Tax Evasion)
- Government Spending (sometimes, including Tax Evasion)
- Gross Income (sometimes, including Tax Evasion)
- Health Savings Account (sometimes, including Tax Evasion)
- History of Taxation (sometimes, including Tax Evasion)
- Income Tax (sometimes, including Tax Evasion)
- Income tax (sometimes, including Tax Evasion)
- Income Tax (sometimes, including Tax Evasion)
- Income Tax Law (sometimes, including Tax Evasion)
- Indirect Tax (sometimes, including Tax Evasion)
- Inheritance Tax (sometimes, including Tax Evasion)
- Offshore Bank (sometimes, including Tax Evasion)
- Payroll Tax (sometimes, including Tax Evasion)
- Progressive Tax (sometimes, including Tax Evasion)
- Property Tax (sometimes, including Tax Evasion)
- Public Finance (sometimes, including Tax Evasion)
- Rate Schedule (Federal Income Tax) (sometimes, including Tax Evasion)
- Real Estate Investment Trust (sometimes, including Tax Evasion)
- Regressive Tax (sometimes, including Tax Evasion)
- Sales tax (sometimes, including Tax Evasion)
- Sales Tax (sometimes, including Tax Evasion)
- Subsidy (sometimes, including Tax Evasion)
- Tariff (sometimes, including Tax Evasion)
- Tax (sometimes, including Tax Evasion)
- Taxation (sometimes, including Tax Evasion)
- Taxation and Customs Union (sometimes, including Tax Evasion)
- Taxation Definition (sometimes, including Tax Evasion)
- Taxation (in different countries) (sometimes, including Tax Evasion)
- Taxation in the European Union (sometimes, including Tax Evasion)
- Taxation Office (sometimes, including Tax Evasion)
- Taxation Principles (sometimes, including Tax Evasion)
- Taxation without representation (sometimes, including Tax Evasion)
- Tax Bracket (sometimes, including Tax Evasion)
- Tax Code (sometimes, including Tax Evasion)
- Tax Code (sometimes, including Tax Evasion)
- Tax Deducted at Source (sometimes, including Tax Evasion)
- Tax Evasion (sometimes, including Tax Evasion)
- Tax exemption (sometimes, including Tax Evasion)
- Tax Forms (sometimes, including Tax Evasion)
- Tax Haven (sometimes, including Tax Evasion)
- Tax Law (sometimes, including Tax Evasion)
- Tax Law Careers (sometimes, including Tax Evasion)
- Tax Law Jobs (sometimes, including Tax Evasion)
- Tax Rate (sometimes, including Tax Evasion)
- Transf
er Pricing (sometimes, including Tax Evasion) - Types of Taxation (sometimes, including Tax Evasion)
- Types of Taxes (sometimes, including Tax Evasion)
- Value Added Tax (sometimes, including Tax Evasion)
- VAT Identification Number (sometimes, including Tax Evasion)
- Withholding Tax (sometimes, including Tax Evasion)
Spanish Translation of tax evasion
This is the legal translation of English to Spanish in relation to tax evasion and / or a definition of this topic: Delito Fiscal (in Spanish, without translation of the dictionary entry).
Tax Evasion and Mutual Assistance
This section provides an overview of tax evasion and mutual assistance within the legal context of Tax Law as an Issue of International Economic Law in international economic law (Main Regulatory Areas).
Resources
See Also
- Taxation
- Public Finance
- Public Policy
- Tax Law
- Financial Regulation
Resources
Further Reading
- Lynne Oats and Angharad Miller, “Tax Evasion and Mutual Assistance,” Elgar Encyclopedia of International Economic Law, Cheltenham Glos (United Kingdom), Northampton, MA (United States)
Hierarchical Display of Tax evasion
Law > Criminal law > Offence > Economic offence > Tax offence
Law > Criminal law > Offence > Tax system > Tax avoidance
Law > Criminal law > Offence > Tax system
Tax evasion
Concept of Tax evasion
See the dictionary definition of Tax evasion.
Characteristics of Tax evasion
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Resources
Translation of Tax evasion
- Spanish: Fraude fiscal
- French: Fraude fiscale
- German: Steuerhinterziehung
- Italian: Frode fiscale
- Portuguese: Fraude fiscal
- Polish: Oszustwo podatkowe
Thesaurus of Tax evasion
Law > Criminal law > Offence > Economic offence > Tax offence > Tax evasion
Law > Criminal law > Offence > Tax system > Tax avoidance > Tax evasion
Law > Criminal law > Offence > Tax system > Tax evasion
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