Tax Avoidance is the use of legal means to bend the rules so that one can pay low tax. Tax evasion is an illegal act of misrepresenation of income so as to avoid payment of tax.
Therefore, the difference between the two concept is in terms of legality. While Tax avoidance is legal, tax evasion is illegal and punishable by the law of the land.
Tax Avoidance is the use of legal means to bend the rules so that one can pay low tax. Tax evasion is an illegal act of misrepresenation of income so as to avoid payment of tax.
Therefore, the difference between the two concept is in terms of legality. While Tax avoidance is legal, tax evasion is illegal and punishable by the law of the land.