Business tax evasion can be defined as the willful attempt by a business entity to avoid paying a tax burden that is legally theirs by all accounts. Business tax evasion laws make it an illegal act to avoid paying taxes by means that are false, and can impose stiff penalties for a business that does so. These laws include all levels of government from federal, state and local tax liabilities. Tax evasion should not be confused with tax avoidance as the two are completely different acts by nature. Tax evasion, as previously stated, is the act in which a business attempts to avoid paying taxes by illegal means. Tax avoidance accomplishes the same thing, but through means that are recognized as completely legal. For instance, a business may choose to invest in municipal bonds which will allow it to avoid paying taxes on the investment.