View The Difference Between Tax Avoidance And Tax Evasion Worksheet Answers Images. The most important difference between tax avoidance and tax evasion is that the former is legal activity while the latter is a criminal activity which is know the differences & comparisons. Tax evasion means concealing income or information from tax authorities tax avoidance is the use of legal methods of reducing taxable income or tax owed.
Tax evasion, on the other hand, is using illegal means to avoid paying taxes. As the former british chancellor of the exchequer denis healey once said: However, those who have witty accountants can keep their taxes to a minimum.
Tax evasion—the failure to pay or a deliberate underpayment of taxes.
It can be a dangerous mistake to make! I'm an historian, a regular columnist for tax notes magazine, and a. Definitions, differences and prison time. While the nature of tax planning is quite obvious, there sometimes seems to be some confusion over the difference between tax evasion and tax avoidance, hence making.