ACCT-4021EL Lecture Notes - Lecture 2: Tax Avoidance, Fide, Tax Evasion
Document Summary
Tax planning - transactions that are clearly within the spirit of the act to reduce, For example, rrsp rules encourage the deferral of tax. Choosing dividend generating investments, over interest bearing investments can reduce tax for an individual. A corporation can elect not to take cca on depreciable assets so that they can use up charitable donations or prior year business losses to reduce or eliminate taxes payable in a year. Tax evasion - the willful and deliberate reporting of tax that is less than the tax payable under the law. Basically, it is a misrepresentation of facts with the intent to deceive authorities by either disclosing incomplete or inaccurate information. Get around the intent or spirit of a section of the ita. and transactions are not illegal, but are designed specifically to.
