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Discuss the difference between tax evasion and tax minimization. Consider when will the tax office deny...

Discuss the difference between tax evasion and tax minimization. Consider when will the tax office deny a deduction based on a taxpayer’s subjective purpose or intention in incurring the expenses.

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Answer #1

Tax minimization reduce your tax bill by structuring your transactions so that you gather the largest tax benefits. Tax avoidance is completely legal and wise.

Tax evasion is a strive to reduce your tax liability by deceit, subterfuge, or concealment. Tax evasion is a type of crime.

The Tax Office has strong views on tax minimisation and tax avoidance. Tax minimisation cannot be at the heart of how we're managing our affairs otherwise the Tax Office would probably look through arrangements and call it a fakr

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