Answer
This statement is false.
Work Step by Step
When y is negative, the two expressions are not equivalent.
For example, consider x=4 and y=-2
$|x-y|\overset?=|x|-|y|$
$|4-(-2)|\overset?=|4|-|-2|$
$|4+2|\overset?=4-2$
$6\ne2$
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