Tax Evasion Law

Tax evasion is the illegal act of not paying the taxes you owe, either by underreporting income, inflating deductions, or hiding money in offshore accounts. The law treats tax evasion seriously; if caught, individuals and businesses can face hefty fines, back taxes, and even prison time. It’s important to accurately report income and pay taxes to comply with the law, as tax evasion undermines public services funded by taxes. Distinguishing between evasion and tax avoidance—legal use of deductions and loopholes—is crucial in understanding tax responsibilities.