Asked by Lauren Stacy on May 01, 2024
Verified
Tax evasion is legal, but tax avoidance is illegal.
Tax Evasion
Tax evasion is the illegal practice of not paying taxes by individuals, companies, or trusts, often by making false declarations or no declarations to tax authorities.
Tax Avoidance
The legal use of tax laws to reduce one's tax burden through various means and financial arrangements.
- Gain an understanding of the principles of tax efficiency, evasion, avoidance, and equity.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
False
Explanation :
Tax evasion is illegal and involves deliberately misrepresenting or concealing information to reduce tax liability. Tax avoidance, however, is legal and involves using the tax regime to one's advantage to reduce the amount of tax that is payable by means that are within the law.
Learning Objectives
- Gain an understanding of the principles of tax efficiency, evasion, avoidance, and equity.