Tax Evasion And Its Outcome

Tax evasion: Tax evasion, in the common parlance, means the act of avoiding payment of tax payable by a citizen of a nation. The laws of every country clearly define tax evasion as being criminal in nature and that offenders could be subject to criminal prosecution. Some individuals, agencies and businesses resort to illegal means to evade taxes by intentionally providing false representations which are far from the truth or by concealing factual statements which would otherwise show the actual state of their financial standing. Such false representations mislead tax authorities to allow for deductions from the actual amounts due as tax.

How to prove the notoriety of tax evasion: There are three factors that must be proven beyond reasonable doubt to charge a person with tax evasion. The first is the 'mental' factor of willfulness or the intention of a person to violate a legal duty expected of him. The offender intends avoiding taxes through unlawful means and methods.

The "attendant circumstance" or tax deficiency is the second factor. This refers to the actual tax that has not been paid by a taxpayer. All features of taxation such as liability and revenues are included under this factor. The third factor is that of 'actus reus’ or action that is motivated by the intent to violate a legal duty. The individual resorts to an illegal act that attempts to evade or is successful in evading taxes.

Punishment for tax evasion: Penalties for evading taxes can range from fines to imprisonment or both. The fine amounts are usually determined by transgressions done such as late filing, late payment and other fraudulent acts meant at delaying or interfering in the taxpaying process. A percentage or fixed amount is deducted as penalty fine from the offender’s income. If the cases are more serious and have accumulated over a period of time due to a deliberate intention of manipulating or defrauding documentation, offenders may have to pay all dues as well as face imprisonment from six months to ten years.

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