ACCT2331 Chapter Notes - Chapter 46: Nature One, Withholding Tax, Video On Demand
Document Summary
Chapter 41 tax evasion, tax avoidance and tax planning [p1021] Tax evasion: involves the illegal underpayment of tax, typically by failing to disclose liabilities or wrongly claiming benefits. Tax avoidance: involves entering into arrangements (which are often contrived or artificial) that are designed to exploit unintended defects and loopholes in the law. Tax planning: involves the arrangement of one"s affairs to exploit legitimate opportunities available under the law (legal) Combating tax evasion: government combats "tax evasion" by imposing pecuniary penalties and jail terms on offenders. Tax evasion can be difficult to detect due to its inherent covert nature: one of the most difficult areas to combat is the. The government has established special taskforces to detect and prosecute tax evasion and money laundering: Serious financial crime taskforce: government combats "tax avoidance" by using specific and general anti-avoidance legislation to strike down schemes, anti-avoidance legislation operates to cancel tax benefits and/or impose penalties, kinds of anti-avoidance provisions:
