corporate tax evasion

Corporate tax evasion involves companies intentionally misreporting or hiding income, assets, or expenses to reduce their taxable income and pay less in taxes than legally owed. This illegal practice undermines fair tax contributions and can distort competition, leading to less public revenue for essential services. Tax evasion differs from tax avoidance, which uses legal methods to minimize taxes. While tax planning is lawful, evasion crosses legal boundaries, potentially resulting in penalties, fines, and damage to a company's reputation. Addressing tax evasion requires strict enforcement and transparency measures to ensure companies pay their fair share.