Tax evasion is the illegal act of intentionally not reporting or underreporting income to the government in order to avoid paying taxes. This can be done by failing to report all income earned, claiming false deductions, or hiding assets in offshore accounts.

It is different from tax avoidance, which is the legal use of tax laws to minimise one’s tax liability. Tax evasion is a serious offence that can result in fines, penalties, and even imprisonment.