Okuzeka
Economics vocabulary · Fiscal Policy and Public Finance

Tax evasion

Meaning in economics, with examples

nounCommon term

In economics, tax evasion means: Illegally paying less tax than you owe, for example by hiding income or not declaring sales.

In Turkish: vergi kaçakçılığı, vergi kaçırma

How it is used

A crime, unlike tax avoidance, which uses legal methods to reduce tax. Economists link tax evasion to the informal economy and to lost tax revenue, sometimes called the tax gap. Authorities crack down on or fight tax evasion.

Example sentences

  1. The government says electronic invoicing has reduced tax evasion.

  2. The business owner was charged with tax evasion after hiding income abroad.

Common collocations

  • crack down on tax evasion
  • tax evasion and avoidance
  • accused of tax evasion
  • fight tax evasion
  • taxationThe system by which a government collects money from people and businesses through taxes on income, profits, spending and property.
  • informal economyEconomic activity that is not registered with or regulated by the state, such as unregistered workers and businesses that pay no tax or social security.
  • tax revenueThe money a government collects from taxes on income, profits, sales, property and other things during a given period.
  • VATShort for value-added tax: a tax on spending that is added to the price of most goods and services at each stage of production and is finally paid by the consumer.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Fiscal Policy and Public Finance

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.