Understanding tax evasion and avoidance

Understanding tax evasion and avoidance, is an essential piece of knowledge! Even if just to avoid prison food..  Do you Understand tax evasion and tax avoidance.  Moreover, do you know the difference between tax evasion and avoidance?Firstly In this podcast, I outline the difference between tax evasion and avoidanceSecondly, I'll also discuss which one is naughty, and should be definitely avoided.Thirdly, which one should be encouragedFinally we will look at some examples of each in action.So let's get started!What is tax evasion ?Tax evasion occurs when a taxpayer deliberately fails to declare income or gains on their return.  Moreover it could  be where false information is submitted in order to reduce their liability for taxation.What is tax avoidance?Tax avoidance is legal.  It means individuals or businesses pay less taxes than they would have paid if they had not taken those steps.The lines between tax avoidance (perfectly legal) and tax evasion (not legal) seem to have become blurred.In the words of Denis Healey, "The difference between tax avoidance and tax evasion is the thickness of a prison wall"There are many ways of avoiding taxes.  However most methods fall into two main categoriesFirstly,  legal methods such as deductions and exemptions from taxable incomeSecondly, illegal methods such as hiding money offshore so no one knows how much you actually earn through your business activities.ConclusionFor many years tax evasion and tax avoidance has been the subject of considerable public concern.  Furthermore, there is no statutory definition of what tax avoidance consists of.If you find yourself at the wrong end, there is always a solution.For more business and finance, news, advice and tips, don’t forget to subscribe and watch our weekly videos on I Hate Numbers, listen to our weekly podcast I Hate Numbers.My podcast will helpListen to find out more.Furthermore, my mission is to inform, inspire and educate you to get closer to your numbers.You can make more profits, save tax and time, improve your well-being and your money mindset.Help me to help you and others by subscribing and sharing this episode in your network.  Listen now and subscribe to I Hate Numbers, so I can send it straight to your inbox every week with all the latest updates.If you found this podcast useful then share this episode on social, leave a review on Apple podcast .  Connect with me on Instagram, YouTube, Twitter, LinkedIn and Facebook,https://podcasts.apple.com/podcast/proactiveresolutionss-podcast/id1500471288https://open.spotify.com/show/5lKjqgbYaxnIAoTeK0zinshttps://www.stitcher.com/podcast/proactiveresolutionss-podcasthttps://tunein.com/podcasts/Business–Economics-Podcasts/I-Hate-Numbers-p1298505/https://www.google.com/podcastsfeed=aHR0cHM6Ly9mZWVkcy5jYXB0aXZhdGUuZm0vaWhhdGVudW1iZXJzLw%3D%3 Pro Active ResolutionsThe Numbers Crew- Here to help you!