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  2. Understanding how tax evasion and tax avoidance compare is key to avoiding landing yourself in hot water or worse, committing a criminal offence. However, the simple difference between the two is the legality behind the actions.

  3. Jan 16, 2024 · Tax avoidance is a bit different from tax evasion in that it’s not technically against the law, although in some cases it does throw up some moral issues. Tax avoidance is essentially using a legal tax avoidance scheme in order to reduce the amount of tax you have to pay.

  4. Tax avoidance is to be distinguished from tax evasion, where someone acts against the law. By contrast tax avoidance is compliant with the law, though aggressive or abusive avoidance, as opposed to simple tax planning, will seek to comply with the letter of the law, but to subvert its purpose.

  5. Sep 3, 2024 · Tax evasion is the use of illegal methods to conceal information or income from HMRC. It’s a form of tax fraud and is used to avoid the payment or assessment of taxes. If someone is found to be evading tax they can be fined or given a prison sentence.

  6. Sep 12, 2024 · What is Tax Avoidance? Described by the UK Government as "bending the rules of the tax system", tax avoidance involves legally minimising tax liability within the boundaries of the law. Tax Avoidance Schemes typically exploit loopholes or take advantage of incentives provided by the government.

  7. Feb 6, 2024 · Not paying tax can, depending on the circumstances, be classed as either tax evasion or tax avoidance. This article outlines the differences between tax evasion and tax avoidance and gives some examples of each.

  8. Sep 13, 2017 · Tax avoidance and tax evasion are not the same thing. Yet they are often conflated in the media and in the court of public opinion. In this article I consider the differences and similarities, and conclude that they do need to be kept separate.