Whether you're already making money or not, chances are you've probably heard of taxes, and heard of how tiresome it can be at times to pay them off. The stress of paying off taxes has led to many individuals completely avoiding it- a practice often called tax evasion. Although it might sound smart to avoid paying taxes, tax evasion may be the worst financial mistake you could possibly make, and here's why. First off, tax evasion is completely illegal in every single country on this planet. So unless you want to get a criminal record, you should probably pay off your taxes. On top of that, repeated evasion of tax can result in a trial and jail time for the evader. In October of 1931, the Chicago gangster Al Capone was sentenced to 11 years of jail for participating in tax evasion. He also had to pay off all the taxes he evaded ($215,000), plus a fine of $50,000. In summary, Al Capone got completely destroyed because he didn't pay off his taxes. Now that you've learned the dangers of evading tax, what is considered to be tax evasion? Failing to pay taxes, failing to report income, underreported income, accepting kickbacks, the creation of fake documents, alterations of legitimate documents, and using a false social security number all fall under the bracket of tax evasion. So basically don't do any of the things I just mentioned. If you're reading this blog, chances are you still don't have to pay taxes yet. But, what's the harm in getting educated early about tax evasion? So, get out there and enjoy your life, but always remember to pay off your taxes in the future!
Comments