Tax Avoidance Versus Tax Evasion Essay - 3179 Words.
Tax evasion is a national pastime that is growing ever more popular. Nick Montague defines taxation as the means by which a civilised society performs that sometimes-uncivil task of taking money from one group in order to give it to another.Tax Evasion on the other hand is the deliberate refusal or failure to pay one’s tax or the reducti9n of ones tax liability through illegal or fraudulent returns or failure to make a return or pay tax on time.9 Implicit in the definition is that Tax Evasion apart from being a moral wrong also amounts to a breach of the tax law.TAX EVASION It is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means.Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability and includes in particular dishonest tax reporting, such as declaring less income, profits or.
This essay will give the background of tax avoidance and discuss whether the government should ban tax avoidance. Background of tax avoidance The meaning of tax avoidance is the legal usage of the tax regime to one’s own advantage, to reduce the amount of tax that is payable by means that are within the law. Vanessa Barford and Gerry Holt.Essay Tax Avoidance Vs. Tax Evasion: The Moral Dilemma. Tax Avoidance vs. Tax Evasion; The Moral Dilemma The typical tax evader in the United States is a male under the age of 50 in the highest tax bracket and with a complicated return. Their most common means of tax evasion is an overstatement of charitable contributions, normally church.
In a globalised and digitised world, tax evasion, avoidance and tax havens pose challenges for governments. The EU is acting on these issues. Being the world’s biggest economic bloc, it could do more, act faster and it could be more effective in curbing tax evaders and avoiders.
