I can classify that's as fraud, any business that tries to evade tax is committing fraud, business should pay tax as at when due to help their government raise money.In our country the business is required to pay a quarterly tax that is adjusted at the end of the year - for the refund of additional payment. Most of the small business owners that I know have been avoiding the quarterly tax payment by declaring zero income (for 3 months). It is not really allowed but the tax officer would approve knowing that the business is small. That is one good reason for a business to remain small... according to the tax record only.
Tax is an obligation to the state and should be honoured to make for smooth running of the state.