What is tax evasion?

Tax

evasion is the elimination or

reduction of ones correct and proper
tax by fraudulent or illegal means.

Also

known as tax dodging, is

punishable by law.

3 Factors are important to constitute

tax evasion, namely:
The

intention to cheat

The

knowledge that tax evasion is

wrong

By

fraudulent means

Other factors
When

a taxpayer believes that the

individual income tax is unfair , if not
outrightly oppressive, for it punishes
individual for being employed.

Great

inconvenience

What is tax avoidance?

Tax

avoidance is when taxpayers exploit

some legally permissible alternative
methods of assessing taxable property or
income in order to avoid or reduce tax
liability.

Tax evasion is not tax avoidance.

What is the difference?
Evasion

should be applied to escape from

taxation, accomplished by breaking the letter of
the tax law.

Avoidance

also applies to escape from taxation,

but this time, accomplished by legal procedures
which may be contrary to the intent of the
sponsors of the tax law but nevertheless violate
the letter of the law.

Under the National Internal Revenue Code, the

following may be considered instances of tax evasion
in various degrees:

Omitting

to report ones income

Intentional

understatement of income

Improper

overstatement of deductions

Claiming

false personal exemptions

Claiming

as exempt corporations even if they are

not

 Misdeclaration

and underdeclaration of the estate

in the estate tax return

Making

withdrawals of articles subject to specific

taxes
Non-payment

of professional tax before exercising

ones profession

Non-payment
Non-

of fixed and other privilege taxes

affixture of taxable documents of

documentary stamps

What are the concrete instances of

tax evasion?