Willful tax evasion leads to criminal prosecution with imprisonment and fines, increasing for larger evaded amounts and repeat offences. Criminal liability under the Income Tax Act covers obstruction of enforcement, improper handling of seized assets, failure to permit inspections, fraudulent removal of property to defeat recovery, liquidator defaults, non deposit of withheld or collected taxes, failure to produce books or comply with audit directions, false statements, abetment, and willful failure to file returns or to furnish search related returns. Penalties are calibrated by offence type and frequently escalate to higher imprisonment terms and fines where specified monetary thresholds or repeat offences apply.