Dictionary
tax evasion
the use of illegal ways to pay less tax
Italy has one of the highest rates of tax evasion in the European Union.
Common Mistakes
- Tax evasion is escaping payment of taxes by illegal means, for example by hiding the true state of one's finances from tax authorities.
It is likely that he will go to prison if he is convicted of tax evasion. - Tax avoidance is escaping payment of taxes by legal means, such as by changing tax residence to a tax haven or by making use of pension plans that postpone tax until retirement.
The law firm set up a scheme that was aimed primarily at tax avoidance.
Phrase Bank
- He is charged with two counts of tax evasion.
- She is set to face legal proceedings in connection with tax evasion.
- He refuses to comment on allegations of tax evasion.
- She is accused of tax evasion.
- She served a three-year jail term for tax evasion.
- He was held over investigations into tax evasion.