What Is the Difference Between Tax Evasion and Tax Avoidance?

Tax evasion is an illegal act in which a taxpayer fails to pay or underpays taxes in violation of tax laws. The main performances are: forgery, alteration, destruction of books, bills or accounting vouchers, false reports, overstatement of expenses and costs, understatement or non-reportation of taxable income or income, concealment of property, or fraudulent use of improper means to defraud the paid taxes Wait. In western countries, there are subjective and objective reasons for tax evasion. On the one hand, taxpayers have a strong desire to reduce their own tax burdens. The more taxpayers are required to declare taxes on their own, the easier it will be to evade taxes. In addition, if public opinion is sympathetic to tax evasion, tax evasion will be encouraged. ^[1]

[táo shuì]

Tax evasion is an illegal act in which a taxpayer fails to pay or underpays taxes in violation of tax laws. The main performances are: forgery, alteration, destruction of books, bills or accounting vouchers, false reports, overstatement of expenses and costs, understatement or non-reportation of taxable income or income, concealment of property, or fraudulent use of improper means to defraud the paid taxes Wait. In western countries, there are subjective and objective reasons for tax evasion. On the one hand, taxpayers have a strong desire to reduce their own tax burdens. The more taxpayers are required to declare taxes on their own, the easier it will be to evade taxes. In addition, if public opinion is sympathetic to tax evasion, tax evasion will be encouraged. ^[1]

"Tax Evasion" (Toevade a tax), also known as "illegal tax evasion", generally refers to the use of illegal means to attempt to pay the relevant tax. In some countries, tax evasion is a criminal offence and those with serious cases may be sentenced to death. ^[2]

Taxpayers use a variety of means to pay less or do not pay. In capitalist countries,

Although tax avoidance and tax evasion are violations of tax laws, there are obvious differences between the two:

(1) The applicable laws are different. Tax avoidance applies laws and regulations related to foreign economic activities; the latter applies only to domestic tax laws and regulations.

(2) The applicable objects are different. The former is targeted at enterprises and individuals with foreign investment, sole investment, cooperation, etc .; the latter is only domestic citizens, legal persons and other organizations.

(3) They behave differently. The former is a taxpayer's use of loopholes and imperfections in tax law to artificially arrange business and financial activities to achieve the purpose of evading or reducing taxes; the latter is a taxpayer engaged in production and business activities. Before the end of the period, there were acts of transferring or concealing its taxable goods, goods, other property, and income, and fulfilling its obligation to evade taxation. Under normal circumstances, it does not constitute a crime, a serious crime of tax evasion, and a prominent means can constitute a crime of resistance to taxes. ^[3]

Tax evasion in a broad sense

Article 201

The taxpayer adopts forgery, alteration, concealment, and unauthorized destruction of account books and vouchers, and records more or no or less income in the books.

Greece is in crisis of tax evasion. Based on various data I provided earlier, it can be concluded that 27.5% of economic activity has not been recorded, which has led to tax evasion activities, and the resulting losses amount to 19 billion euros per year. You can argue this number, but no one can deny that Greece is the main country for tax evasion in Europe-just surpassing Italy. Although Spain is also in crisis, even in some other European countries have topped the list, but none surpassed Greece. In this case, you definitely want the Greek tax authorities to use whatever or whatever they can to collect the billions of euros they have lost

On June 28, 2014, the U.S. Treasury Department has drafted an agreement with the Chinese government. The move aims to implement a federal law passed in 2010 to curb overseas tax evasion. The law requires foreign banks to submit information about accounts owned by U.S. citizens to the IRS, which will force banks around the world not to make certain types of payments to any financial institution that does not comply with the law. The official name of the law is the Foreign Account Tax Compliance Act (fatca). At present, the United States and China have signed a type of reciprocity agreement. Under the agreement, China will provide US citizens with financial account information for the U.S. government, while the United States will provide Chinese citizens with US account information for the Chinese government. ^[6]