Tax evasion refers to the illegal act of intentionally avoiding paying taxes that are owed to the government. It involves various points, including:

1. Underreporting income: Tax evaders often conceal or understate their actual income to reduce the amount of tax they owe. This can be done by not reporting cash transactions, inflating deductions, or hiding assets.

2. Offshore accounts: Individuals or businesses may open bank accounts in foreign countries to hide their income and assets from tax authorities. By keeping funds offshore, they can avoid paying taxes on that income.

3. Shell companies: Tax evaders may create shell companies or fake businesses to divert their income and assets. These entities are often used to hide the true ownership and control of funds, making it difficult for tax authorities to trace the money.

4. False invoices and expenses: Some individuals or businesses create fake invoices or inflate expenses to reduce their taxable income. By manipulating financial records, they can lower their tax liability.

5. Transfer pricing manipulation: Multinational corporations may manipulate transfer prices between their subsidiaries in different countries to shift profits to low-tax jurisdictions. This allows them to avoid paying higher taxes in countries with higher tax rates.

6. Off-the-books transactions: Cash transactions that are not recorded in official financial records are a common method of tax evasion. By conducting business transactions in cash, individuals and businesses can avoid leaving a paper trail that could be detected by tax authorities.

7. Identity theft: Tax evaders may steal someone else’s identity to file fraudulent tax returns and claim refunds. This allows them to receive tax benefits or refunds to which they are not entitled.

8. Misuse of tax loopholes: Some individuals or businesses exploit legal loopholes in tax laws to minimize their tax liability. They take advantage of ambiguous or poorly defined provisions in tax codes to avoid paying taxes.

9. Failure to file tax returns: Simply not filing tax returns is another form of tax evasion. By not reporting their income or activities to tax authorities, individuals and businesses can evade taxes altogether.

10. Bribery and corruption: Tax evasion can involve bribing tax officials or engaging in corrupt practices to avoid detection or penalties. This can include paying off tax inspectors or using connections to influence tax audits.

It is important to note that tax evasion is illegal and punishable by law in most jurisdictions. Governments have implemented various measures to detect and combat tax evasion, including increased scrutiny, data sharing between countries, and penalties for offenders.