Tax evasion is the illegal evasion of taxes by individuals, corporations and trusts. Tax evasion activities included
• Underreporting income
• Inflating deductions or expenses
• Hiding money
• Hiding interest in offshore accounts
1. If a person wilfully commits the act of tax evasion, he may face felony charges. Tax evasion penalties include imprisonment of up to five years and high amount as fines.
2. The defendant may also be ordered to pay for the costs of prosecution.
3. Tax evasion penalties can be harsh, depending on the severity of the crime.