Tax PNG Transparent Images

Submitted by on Jul 2, 2016


There is a clear distinction between tax evasion and tax avoidance. One of them is legally permissible, and the other is a crime. Unfortunately, many advisers, even in this country do not understand the difference between tax avoidance and tax evasion. Most aspects of planning, which have been proposed by these consultants often fall into the category of tax evasion (which is illegal) and, thus, seeks to put customers at risk, as well as reduce the cost of tax planning.

This may be one of the main reasons where clients have lost faith in consultants for tax planning, most often offered suspicious of the system, which are clearly in the category of tax evasion.

I will give a few examples and case studies (including lawsuits) on how to carry out tax evasion (often provide consultants who claim to experts in the field of tax planning), not only in this country but also in the many parts of the world, It is true that many people do not like to pay hard earned money to the government.

Income Tax Expense


Income tax expense for the largest source of public funds to date in most countries is a relatively recent invention, probably because the idea of ??annual income is a modern concept. Governments prefer to tax things that are easy to measure, and that it was so easy to calculate the liability. Therefore, early tax concentrate tangible assets such as land and property, physical goods, goods and ships and such things as the number of windows or fireplaces in the building.

In the 20th century, especially in the second half, governments around the world appeared more significant share of the national income tax in their country, mainly to pay for increasingly expensive effort on defense and the modern welfare state. The indirect tax on consumption such as value added tax, is becoming increasingly important as the direct taxation of income and wealth is becoming increasingly unpopular. But big differences remain between countries. One of them is the general level of taxation. For example, U.S. tax revenue is from about one-third of GDP (gross domestic product), whereas in Sweden it is closer to half.

Tax Avoidance

Tax avoidance can be summarized as doing everything possible within the law to reduce your tax bill. Learned Hand, American judge once said that there is nothing wrong in so organize their affairs to keep taxes as low as possible, since there is no obligation of any public duty to pay more than is required by law.

On the other hand, tax evasion can be defined as paying less in taxes than they are required by law. Individuals and companies have the right to take all legal measures to minimize taxes.

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