Tax evasion facts for kids

Tax evasion is the evasion of taxes by trusts, by persons or business. The term tax evasion usually refers to when taxpayers deliberately misrepresent the actual state of their affairs to tax authorities to reduce their tax liability.This includes dishonest tax reporting, such as declaring less income or profit than the amounts which were actually earned. Tax evasion is an activity connected with the informal economy.

Images for kids

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  The ratio of German assets in tax havens in relation to the total German GDP, 1996–2008. The "Big 7" shown are Hong Kong, Ireland, Lebanon, Liberia, Panama, Singapore, and Switzerland.

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  Tax campaigner Richard Murphy's estimate of the ten countries with the largest absolute levels of tax evasion. He estimated that global tax evasion amounts to 5 percent of the global economy.

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  The size of the shadow economy in Europe, 2011.

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  A "Lion's Mouth" postbox for anonymous denunciations at the Doge's Palace in Venice, Italy. Text translation: "Secret denunciations against anyone who will conceal favors and services or will collude to hide the true revenue from them."

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  Poster issued by the British tax authorities to counter offshore tax evasion.

See also

In Spanish: Evasión fiscal para niños