Tax evasion is
A) Illegal and when finding loopholes in the system
B) legal and when finding loopholes in the system
C) legal and includes the informal economy
D) illegal and includes the informal economy

Question

Quizplus · Accepted Answer

Tax evasion involves the deliberate non-payment or underpayment of taxes, which is illegal. This includes not only the formal economy but also the informal economy, such as under-the-table cash transactions. Finding loopholes in the system to avoid paying taxes is considered tax avoidance, which is legal but not necessarily ethical.

Tax Evasion Is