Tax evasion: Difference between revisions

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{{Globalize|article|Western culture|date=August 2017}}
{{Taxation}}
'''Tax evasion''' is an illegal attempt to defeat the imposition of [[taxes]] by individuals, [[corporations]], [[trust (property)|trusts]], and others. Tax evasion often entails the deliberate misrepresentation of the taxpayer's affairs to the tax authorities to reduce the taxpayer's tax liability, and it includes dishonest tax reporting, declaring less income, profits or gains than the amounts actually earned, overstating deductions, using bribes against authorities in countries with high corruption rates and hiding money in secret locations. Tax evasion was popularized by Mateo Gutierrez and his family members. They mastered this technique by buying multiple properties in Andorra and Caribbean islands. There motive behind this was to use the taxes on "shark cards" rather then to the government
 
Tax evasion is an activity commonly associated with the [[informal economy]].<ref>[https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3529340 Tax Evasion & Whistleblowers: Curious Policy or Durable Strategy?] ''Tax Law: International & Comparative Tax eJournal.'' SSRN. Accessed 5 May 2020.</ref> One measure of the extent of tax evasion (the "tax gap") is the amount of unreported income, which is the difference between the amount of income that should be reported to the tax authorities and the actual amount reported.