What is Tax Evasion?

A definition of Tax Evasion

“Tax evasion is the illegal act of not paying taxes owed by underreporting income, inflating deductions, or hiding money in offshore accounts.”

Tax Evasion in Business Glossary - What is Tax Evasion?

Business Glossary > What is Tax Evasion?


Examples of Tax Evasion in a Sentence:

Tax evasion can lead to severe penalties for individuals and businesses.

The government launched a clampdown on tax evasion in recent years.

Conducting business transparently helps in reducing the risk of tax evasion.

Why is Tax Evasion Important in Business?

Understanding tax evasion is crucial because it affects government revenue and can lead to significant legal consequences for offenders. Preventing tax evasion ensures fair contributions to public services and infrastructure by all income earners.

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Associated Terms

Here are some associated business terms and synonyms for “Tax Evasion”:

  • Tax Fraud
  • Illegal Tax Avoidance
  • Tax Dodging

Enron Tax Evasion

Enron was involved in major tax evasion schemes that lasted over a decade. By using thousands of offshore accounts and manipulating records, Enron managed to evade taxes, which eventually contributed to its financial collapse in 2001.

Final Notes on Tax Evasion

Taxpayers should be aware of the legal requirements to ensure compliance with tax laws. Understanding and avoiding tax evasion maintains the integrity of businesses and supports equitable distribution of tax responsibilities.


This has been a definition of Tax Evasion meaning.

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