Tax evasion; illegal nonpayment of tax

Nonpayment of tax may be legal or illegal. If legal, it is tax avoidance. If illegal, it is tax evasion.

Tax evasion applies to both the illegal nonpayment as well as the illegal underpayment of taxes. Generally, a person is not considered to be guilty of tax evasion unless the failure to pay is deemed intentional. SOURCE: Investopedia. Tax Evasion.

Tax evasion connotes the integration of three factors: (1) the end to be achieved, i.e., the payment of less than that known by the taxpayer to be legally due, or the non-payment of tax when it is shown that a tax is due; (2) an accompanying state of mind which is described as being evil, in bad faith, willfull,or deliberate and not accidental; and (3) a course of action or failure of action which is unlawful. (G.R. No. 147188)