Abstract
Tax evasion is considered by the international laws and domestic laws of most countries as a form of fraud. In most countries, a gap exists between the expected tax revenues and the tax revenues that are actually collected. This gap is naturally due to tax evasion. Understanding why individuals and organizations evade taxes is the first step in reducing the aforementioned gap. For a taxation system to be well received and accepted by both the state and the public, it has to be just and fair, clear and precise, and take into consideration the interest of both the state and the citizen. This chapter explores tax evasion.