TAX EVASION Meaning and
Definition
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Tax evasion refers to the illegal practice of deliberately avoiding, manipulating, or misrepresenting one's financial information in order to evade or escape paying taxes owed to the government. It is the act of intentionally evading the payment of taxes by engaging in fraudulent activities or deceptive schemes, aiming to reduce one's tax liability.
Tax evasion typically occurs when an individual or business entity deliberately fails to report their true income, overstates expenses, maintains multiple sets of financial records, hides assets, or engages in other deceptive practices to lessen the tax burden owed to the government.
This illegal activity is carried out with the intention of deceiving tax authorities, such as the Internal Revenue Service (IRS) in the United States or Her Majesty's Revenue and Customs (HMRC) in the United Kingdom, who are responsible for collecting and enforcing tax laws.
Tax evasion is typically characterized by the deliberate violations of legal obligations, and it is often distinguished from tax avoidance, which is the legal practice of taking advantage of available tax exemptions, deductions, or other favorable provisions to minimize tax liabilities.
Tax evasion is considered a serious crime in most jurisdictions, and those found guilty may face significant penalties, including fines, imprisonment, or both. Jurisdictions around the world have implemented various measures and enforcement mechanisms to prevent and detect tax evasion, aiming to ensure that individuals and businesses fulfill their tax obligations and contribute to the funding of public services and government activities.
Common Misspellings for TAX EVASION
- rax evasion
- fax evasion
- gax evasion
- yax evasion
- 6ax evasion
- 5ax evasion
- tzx evasion
- tsx evasion
- twx evasion
- tqx evasion
- taz evasion
- tac evasion
- tad evasion
- tas evasion
- tax wvasion
- tax svasion
- tax dvasion
- tax rvasion
- tax 4vasion
- taxevasion
Etymology of TAX EVASION
The word "tax evasion" consists of two parts: "tax" and "evasion".
1. Tax: The word "tax" originates from the Latin word "taxare", which means "to evaluate or estimate". It evolved into "taxa" in late Latin, referring to a monetary charge. The term further developed in Middle English, used to mean "a contribution to public revenue" or "a burden or strain".
2. Evasion: The term "evasion" comes from the Latin word "evadere", which means "to escape" or "to avoid". It is formed by combining "e-" (out) and "vadere" (to go). In English, "evasion" is commonly used to describe the act of avoiding or escaping something, often referring to the act of avoiding a duty or responsibility.
Similar spelling word for TAX EVASION
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