Fraud

Fraud In the context of taxation, Fraud refers to intentional and deceptive actions by individuals or businesses to evade or avoid paying taxes legally owed to the government. It involves knowingly providing false information, concealing income or assets, or manipulating financial records to reduce tax liability unlawfully. Common forms of tax fraud include: Underreporting income or profits. Inflating expenses or deductions to lower taxable income. Creating fake invoices or shell entities to hide transactions. Tax fraud is a serious offense and can result in penalties, interest, prosecution, or imprisonment under tax laws. .

Example: A business owner intentionally reports lower sales figures and fabricates expenses to reduce taxable income — this constitutes tax fraud