​What is Tax Evasion?

[cosmo]

Depending on your country of residence, many are now overwhelmed with the ever increasing range‌ of taxes that they are required to pay. If you are due to pay tax‍ and you foolishly attempt to evade paying them, by not declaring income or other means,⁠ then this is tax evasion. We do not reccomend this to anyone, unless they are⁤ curious about what the inside of a prison looks like.

What is Tax Avoidance?

Alternatively Tax Avoidance is simply arranging your affairs in such a way to pay the least⁣ amount tax possible. This is why business owners employ accountants, to avoid paying as much⁢ tax as possible. Therefore Tax Avoidance, unlike Tax Evasion is a 100% legal practice as︀ it works within the confines of the law.

Why Go Offshore

If you set up︁ your business in an Offshore Jurisdiction within a legal offshore structure, you can avoid the︂ high taxes that are levied upon businesses in many high tax jurisdictions.

Is it Moral︃ to avoid Taxes?

Taxes are used to pay for hospitals, schools, essential services and the︄ like. Did you realise though, that appoximately half the worlds money is in Offshore Banks?︅ Who benefits from Offshore Banking? Well it used to be the preserve of the rich,︆ politicians, famous people, etc Now though anyone can go offshore.Many simply cannot survive paying such︇ high taxes. If you live in a high tax jurisdiction and are happy with paying︈ high taxes, fine. If not the following quotation may have some bearing on your decision:︉

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[Lecitia]

Everyone looks out for a small deduction in the amount of tax they pay. In‌ most countries, philanthropic activities give you a tax-free amount. Total tax evasion is definitely not‍ moral, we must give back to the country at least a small part as a⁠ tribute for using the place and the resources. But as you clearly point out, many⁤ people go for avoiding huge taxes, and it is 100% legal too! Best thing to⁣ do is to only do what is moral.

 

[MarkMiller]

Very good information, pucket!

I would like to add some more to "what is tax‌ evasion" as far as IRS is concerned, and I'd like to stay close to its‍ wording mentioned in the Statutory Language: I.R.C 7201 - Attempt to evade or defeat tax:⁠

It says that there are two major kinds of tax evasion. When a person is⁤ trying to willfully defeat or evade the:

1. Assessment of a tax,

or,

2. Payment of a tax.

The first type of evasion of tax will occur when a person⁣ tries to transfer some of his assets because he/she doesn't want the I.R.S to find⁢ out his/her true tax liability, and the second type of evasion of tax occurs when︀ he or she does the same -- transfer some of the assets because of the︁ above reason -- after the tax liability has become due for payment.

It is commonly︂ seen that the person doesn't show some of the income or/and shows false deductions in︃ the tax returns statement, and thus it becomes tax evasion attempt on his or her︄ part. It then becomes a case of evasion of assessment offense. The same kind of︅ willful wrong information is shown when the time comes to pay the tax when the︆ tax is not paid, and then the tax liability determined by the government agency.

The "person" in the above text can mean anyone of the following who have wlcaused the︇ said tax evasion / violation act:

Individual,

Return preparers,

Guardian or executors.

Officer or employee︈ of a Corporation,

Member or employee of a partnership firm,

or anyone in particular who︉ has been chiefly involved in the tax violation action.

So it means that the tax︊ payer is not the only one who will be held responsible for the said violation.︋ But I humbly advice you, readers, to please read the official version of this I.R.C.︌ 7201 and understand the violation types from that official information page itself.

HTH

 

[clemens]

I agree with MarkMiller and want to add that tax evasion is defiantly not something‌ anyone want to get into.

 

[Lecitia]

Very valid piece of advice. It is always⁤ good to keep one's company safe than to risk everything just for the sake of⁣ evading tax.

 

[footi gupt]

Tax avoidance...
Nice info there..
I also think if we open many bank accounts and‌ distribute our income\profit into multiple accounts then with single account, we can save big amount‍ of tax..

 

[Jack Dui]

This is a big question, 'is it moral to avoid tax?'

 

[negon]

How you wll achieve that? just because⁠ you have multible bank accounts it does not mean you don't have to pay tax⁤ or did I misunderstood you?

 

[negon]

It's about to take a risk to get a better live I believe.‌ Sometimes it's just not worth the risk.

 

[footi gupt]

there are different slabs applicable in income tax,
If your profit is small‍ or less then you dont have to pay tax on that. Similarly if you make⁠ 10's of accounts and divide profit into 10 accounts then offcourse you need to pay⁤ very less tax as compare to 1 account.

 

[Jack Dui]

Agree with you. And if‍ there is the question of morality then, why ONLY 10% people owe world's 1/3 wealth!!!⁠

 

[deadpool]

Off course yes. In some businesses you cant exist without planting foot on‌ tax havens.

 

[myshufflemix]

I watched the video. Large corporate must also support their own country. US Market is‌ one of the largest market where the corporate get their sales.

 

[johnskywalker]

There are many popular celebrities, athletes who avoid paying Taxes because they're too much! You‌ get your hard earned money and some of it will just go to the government‍ to spend on what? I can't believe some countries like Philippines implement high tax and⁠ not be a first world country like Singapore!

 

[deadpool]

It's an irony, Neatherlands being a tax haven to a few is also a high‌ tax jurisdiction for its citizens.

 

[RamsayB]

This is the reason why it looks like a tax evasion on the eyes of‌ the government. But the real thing is tax evasion is needed these days because the‍ government is killing their people with taxes!

 

[SirTycoon]

Business in an Offshore can maintain a strategic distance from the high duties that are‌ required upon organizations in numerous high expense wards.

 

[clemens]

Shall we take up the discussion again in 2022? or is tax evasion simply over?‌

 

[timeismoneyfriend]

how come?

 

[clemens]

What ?