Exam CFE - Law topic 1 question 10 discussion

Frederick’s actions—failing to report foreign bank accounts to reduce his taxable income and thus avoid paying taxes—are characteristic of tax evasion. More specifically, since this relates to his failure to report assets and income from foreign bank accounts, it falls under income and wealth tax evasion. Income and wealth tax evasion refers to the intentional failure to report or underreport income or assets to avoid paying taxes. In this case, Frederick is intentionally not reporting his foreign bank accounts to avoid paying taxes, which constitutes evasion under income and wealth taxation laws.