Latest PostR.M.C. No. 49-2020: Additional Options in the Acceptance and Processing of the Filed 2019 Income Tax Returns. R.M.C. No. 48-2020: Manner of Accepting Payment of Internal Revenue Taxes How Businesses and Their Employees Adjust for the “New Normal” NO PLANS TO FURTHER EXTEND TAX DEADLINES R.M.C. 47-2020: Allowing Taxpayers to Use Temporary Receipts or Invoices during E.C.Q.
The Difference between Tax Avoidance and Tax EvasionShare:
Hate to pay your taxes and do you really think that your taxes works for you? And you thought that paying taxes is just like throwing your income into trash bin? Everyone must be liable in paying taxes; no exemption and no discrimination.
This article will show readers the difference of two (2) tax systems. It will show factors on how they be compared in the policy of the constitution.
Tax Avoidance and Tax Evasion
Tax Avoidance is a process of minimizing tax liabilities by taking such means. It is by adjusting the accounts by postponing, shifting, and eliminating payments and it does not violate tax rules.
Tax Evasion is a criminal activity that involves deliberating false representation of material facts and hiding relevant documents. Technically, it is punishable under the law.
Tax avoidance is taking unfair advantage in the tax processes and Tax evasion is a deliberating manipulations in accounts resulting as fraud.
Tax avoidance reduces tax liabilities by applying the script of law and Tax evasion is to reduce tax liability by exercising unfair means.
Tax avoidance will lead to deferment of tax liability and Tax evasion will lead into imprisonment or penalty.