Investor Glossary-tax evasionInvestor Glossary-tax evasionInvestor Glossary-tax evasionInvestor Glossary-tax evasionInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Tax Evasion

The HTML to link to this page
 

Tax evasion is the deliberate underpayment or non-payment of taxes through deceptive and illegal means. Overstating deductions and exemptions, claiming deductions to which one isn't entitled, and underreporting income are common tax evasion tactics. Illegal tax shelters such as a limited partnership that overstates the market value of acquired property is another common tax evasion tactic. Payroll fraud is a typical form of business tax evasion. This method of tax evasion typically entails retaining employee withholdings, filing a false payroll return, or paying employees in cash. Another tax evasion scheme is the abusive trust which uses a series of vertically integrated trusts to disguise transactions or conceal the true owners of income. This tax evasion tactic is often targeted at small business owners and wealthy individuals. Tax evasion is distinct from tax avoidance, which entails using all available legitimate deductions, deferrals, and credits to reduce tax liability. Entities caught engaging in tax evasion have to pay back taxes and significant penalties, and may be subject to criminal prosecution.



Rate this tax evasion definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: Key Rate Duration, EBITDA, phantom income, debt service coverage, inflation, liquidity ratio, wholly-owned subsidiary, limit order, Zero Cost Collar, FTSE, LIBOR, required rate of return, covered put, 401a, class C shares, diluted share, annual return, APR, stock market close, VIX, current ratio, labor relations, 144a, ex-dividend date, 1035 exchange, cancelled check, per diem, implied volatility, real GDP, minority interest, margin rate, command economy, ex-dividend, quality assurance, irrevocable trust, risk management, in escrow, reverse mortgage, retained earnings, deferred tax, dividends payable, average price per share, option premium, balance sheet, open position, 1031 exchange, stock split, FICO score, deferred revenue


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use