Tax evasion

Tax evasion refers to the illegal practice of manipulating financial affairs to reduce or avoid paying taxes owed to government authorities. Common techniques include underreporting income, inflating deductions, and hiding money in offshore accounts. These actions undermine the tax system's fairness, place an additional burden on law-abiding taxpayers, and can result in severe penalties, including fines and imprisonment. Understanding tax evasion is crucial for policymakers, businesses, and individuals to ensure compliance and integrity in financial practices.