Tax evasion is a felony crime. It is a serious offence against the tax system and its agencies. In essence it is a blow against the country itself. Tax evasion involves the deliberate misrepresentation and/or concealment of the true state of financial affairs to the IRS or other comparable agencies. It may be done at the level of the individual, small business or multi-national corporation. Tax evasion may take the guise of an offshore account or a shell company. It may involve a failure to correctly report or collect sales tax. Whatever its format, tax evasion is a serious crime in all developed and civilized nations. Canada, the United States, Canada, Mexico, Australia, the United Kingdom and other countries have laws against this illegal practice. For any individual or corporation, tax evasion penalties are severe. Tax evasion penalties in the United States consist of a fine and imprisonment. These can be separate penalties or combined. An individual who commits tax evasion may be fined up to $100,000. A corporation can be fined up to $500,000. Both may have to serve 5 years in prison. Both are also liable for the expenses of prosecution.