A report on Tax noncomplianceTax and Tax avoidance

The ratio of German assets in tax havens in relation to the total German GDP. Havens in countries with tax information sharing allowing for compliance enforcement have been in decline. The "Big 7" shown are Hong Kong, Ireland, Lebanon, Liberia, Panama, Singapore, and Switzerland.
Total revenue from direct and indirect taxes given as share of GDP in 2017
Avoiding the window tax in England
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.
Pieter Brueghel the Younger, The tax collector's office, 1640
Countries with politicians, public officials or close associates implicated in the Panama Papers leak on 15 April 2016
Poster issued by the British tax authorities to counter offshore tax evasion.
Substitution effect and income effect with a taxation on y good.
HMRC estimated tax gaps 2005-2019
Budget's constraint shift after an introduction of a lump sum tax or a general tax on consumption or a proportional income tax.
The Laffer curve. In this case, the critical point is at a tax rate of 70%. Revenue increases until this peak, then it starts decreasing.
General government revenue, in % of GDP, from social contributions. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 20% by social contributions revenue.
Egyptian peasants seized for non-payment of taxes. (Pyramid Age)
Public finance revenue from taxes in % of GDP. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 32% by tax revenue.
Diagram illustrating deadweight costs of taxes

Tax noncompliance (informally tax avoision) is a range of activities that are unfavorable to a government's tax system.

- Tax noncompliance

Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law.

- Tax avoidance

This may include tax avoidance, which is tax reduction by legal means, and tax evasion which is the criminal non-payment of tax liabilities.

- Tax noncompliance

The first known taxation took place in Ancient Egypt around 3000–2800 BC. A failure to pay in a timely manner (non-compliance), along with evasion of or resistance to taxation, is punishable by law.

- Tax

Both tax evasion and some forms of tax avoidance can be viewed as forms of tax noncompliance, as they describe a range of activities that are unfavourable to a state's tax system.

- Tax avoidance

The more details of tax policy there are, the more opportunities for legal tax avoidance and illegal tax evasion.

- Tax
The ratio of German assets in tax havens in relation to the total German GDP. Havens in countries with tax information sharing allowing for compliance enforcement have been in decline. The "Big 7" shown are Hong Kong, Ireland, Lebanon, Liberia, Panama, Singapore, and Switzerland.

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Overall

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.

Tax evasion

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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.
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.
The size of the shadow economy in Europe, 2011.
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."
Poster issued by the British tax authorities to counter offshore tax evasion.

Tax evasion is an illegal attempt to defeat the imposition of taxes by individuals, corporations, trusts, and others.

In contrast, tax avoidance is the legal use of tax laws to reduce one's tax burden.

Both tax evasion and tax avoidance can be viewed as forms of tax noncompliance, as they describe a range of activities that intend to subvert a state's tax system, but such classification of tax avoidance is disputable since avoidance is lawful in self-creating systems.