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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | 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