This paper develops the fundamentals of a theory of evasion incidence. Although many tax evasion studies have been motivated by the horizontal and vertical inequalities generated by tax evasion, the potential distributional impact of tax evasion has not been closely examined in the literature. In traditional models, the incidence of evasion has not been closely examined in the literature. In traditional models, the incidence of evasion is simple: the tax evader alone benefits from evasion and therefore there is no need to examine the issue further. However, potentially successful tax evasion can be considered as similar to tax advantages provided in the law. From that perspective, it is clear that the incidence of tax evasion can be as complex as the incidence of taxation. A critical difference between the theory of tax incidence and the theory of tax evasion incidence is the element of uncertainty almost always present in the latter. This paper explores allocational and distributional issues in the incidence of evasion, the main features that models of evasion incidence must have, and the implications of evasions incidence for tax policy and tax administration.