Tax evasion often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reduce their tax liability and includes dishonest tax reporting , such as declaring less income , profits or gains than the amounts actually earned , or overstating deductions .
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 .