Different types of taxes
This query is : Resolved
23 January 2013
Sir
Though the question i am asking is not covered anywhere in ipcc syllabus,still i want answeres to this as this creates confusion in my mind.
what is difference between tax evasion,tax avoidance and tax mitigation?
Though the question i am asking is not covered anywhere in ipcc syllabus,still i want answeres to this as this creates confusion in my mind.
what is difference between tax evasion,tax avoidance and tax mitigation?
23 January 2013
Tax Evasion:
tax evasion can be defined as paying less tax than you are legally obliged to.
.
Tax Avoidance :
Tax avoidance can be said as doing everything possible within the law to reduce the tax liability.
.
There is a clear-cut difference between tax evasion and tax avoidance. Tax evasion is an offence whereas tax avoidance may be legally acceptable.
.
TAX MITIGATION:
Tax is mitigated by a taxpayer who willingly reduces his income or incurs higher expenditure to reduce his assessable income for reduction in his tax liability.
.
tax evasion can be defined as paying less tax than you are legally obliged to.
.
Tax Avoidance :
Tax avoidance can be said as doing everything possible within the law to reduce the tax liability.
.
There is a clear-cut difference between tax evasion and tax avoidance. Tax evasion is an offence whereas tax avoidance may be legally acceptable.
.
TAX MITIGATION:
Tax is mitigated by a taxpayer who willingly reduces his income or incurs higher expenditure to reduce his assessable income for reduction in his tax liability.
.
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