From Simple English Wikipedia, the free encyclopedia
Tax evasion
is criminal activity to evade
taxes
. It may be done by trusts, persons or
organization
s. The main way taxpayers evade taxes is by deliberately misrepresenting the actual state of their affairs to tax authorities to reduce their tax liability. This includes dishonest tax reporting, such as declaring less income or profit than the amounts which were actually earned. Tax evasion is an activity connected with the informal
economy
.