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How big a line can be drawn between Tax Avoidance and Tax Evasion?

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Question added by Deleted user
Date Posted: 2014/12/10
Saad Arshad
by Saad Arshad , Assistant Accounts Manager , Arshad & Ali Associates

According to me Mr. Hesham Lofty is saying the right thing , well tax avoiding is simply to reduce your tax liability by using your skills and experience on the basis of knowledge using it the legit way, on the other side if you use the same knowledge to reduce the lax liability by hiding the revenue or income , which you are bound to show in a illicit manner then you can call it tax evasion for sure.

Hesham Lotfy
by Hesham Lotfy , Regional Tax Expert , Lukoil Overseas Services

Tax avoidance is avoidance of tax by using the legal oppertunities in the tax law to plan for taxes (i.e its a legal way to plan to achive the most effective tax rate.

Tax Evasion is intensionally evaded taxes by a crminal way (not legal).

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