under- + taxed
undertaxed (comparative more undertaxed, superlative most undertaxed)
- Taxed at less than an appropriate level
2007 September 15, Elisabeth Malkin, “Mexico Enacts a Tax-Overhaul Bill”, in New York Times:
“Mexico is an undertaxed country, not an overtaxed country,” said Damian Fraser, the head of Latin America research at UBS Securities in Mexico City.