Chapter 10 - 5.2 - Tax Evasion

Question 1

What is tax evasion?

Answer 1

Tax evasion is illegally seeking to pay less tax than is due by deliberately misleading HMRC. It carries a risk of criminal prosecution (fines and/or imprisonment)

Question 2

What are the main forms of tax evasion?

Answer 2

• Suppressing information e.g failing to declare taxable income to HMRC
• Submitting false information e.g claiming expenses than have not been incurred