Tax Evasion is when when somebody deliberately omits, conceals or misrepresents information to reduce their tax liabilities. Evaders will typically understate or hide a source of income. Tax Evasion is Fraud.
Tax Avoidance is reducing your tax liability within the procedures allowed by tax legislation. Sometimes professional advisors identify “loopholes” which enable people to “avoid” tax legally, although the general public thinks of them as “tax evasion”, they are not against the law, although occasionally the government changes the law to stop them being used.
Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.
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