2007-04-05 01:42:01 · 11 answers · asked by ArgeLo 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Tax avoidance refers to legal ways of minimizing your taxes. Tax evasion refers to illegally avoiding taxes, so that's the one that's bad.
2007-04-05 04:27:16 · answer #1 · answered by Judy 7 · 4⤊ 0⤋
Tax Avoidance is legal. Tax Evasion is not.
For example: Investing in Municipal Bonds is "Tax Avoidance" as the interest income on Muni Bonds is not taxed. Taking a huge charitable deduction that you did not make is Tax Evasion and could land you in jail.
2007-04-05 01:55:26 · answer #2 · answered by Wayne Z 7 · 5⤊ 1⤋
Tax evasion is a crime. Tax avoidance is expected and is legal.
2007-04-05 02:04:27 · answer #3 · answered by Oh Boy! 5 · 5⤊ 0⤋
Tax evasion is illegal.
Tax avoidance is using the law to minimize your tax liability. It is perfectly LEGAL. Investing in tax-free munis, contributing to an IRA or other tax-deferred investment vehicle, holding assets for over one year to get the long-term treatment, offseting capital gains by dumping turkeys that have lost value, are all examples of tax avoidance. Please ignore the clowns who say that it is illegal.
2007-04-05 03:04:32 · answer #4 · answered by Bostonian In MO 7 · 4⤊ 1⤋
It replaced right into a complicated scheme wherein Jimmy Carr gets around the tax by ability of utilising Jersey to confuse issues.. In essence, he gets a Jersey shell agency to hire him. the agency employs him to paintings interior the united kingdom yet takes maximum of his income so as that when the tax guy sees his earnings, evidently under it is.. money is 'loaned' back to him. This counts as a tax liabilities which he can offset against his income.
2016-11-07 06:50:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Tax evasion is a lot worse.
2007-04-05 01:46:45 · answer #6 · answered by Anonymous · 2⤊ 2⤋
if you want to pay tax with fine, u choose tax evasion,
if you want to reduce your tax and increase your investment in approved bonds, u better go for tax avoidance
2007-04-05 02:19:34 · answer #7 · answered by one2one 1 · 0⤊ 2⤋
Neither.
Tax Compliance!
2007-04-06 03:14:38 · answer #8 · answered by bold4bs 4 · 0⤊ 0⤋
evasion
2007-04-05 02:23:52 · answer #9 · answered by Jo Blo 6 · 0⤊ 2⤋
they both bad.. do you mean which is more badder?
Evasion i guess.. technically they could both be defined as the same thing.
2007-04-05 01:45:58 · answer #10 · answered by Anonymous · 0⤊ 5⤋