PrevNext

Tax Evasion

What Is Tax Evasion?

Tax evasion is the deliberate act of not paying tax.

 

Tax avoidance is the legal way to minimise the amounts paid by using tax deductions.

Evading Tax is Illegal

Laws apply in most jurisidictions for individuals and companies to pay tax. It is illegal to pay less than what the law states and you will end up severely penalised if caught trying to evade. It is not illegal to prevent overpayment of taxes. Knowing all the legal ways to minimise tax is important. Read on.

The Law Will Catch You Eventually

Don’t try and cheat the government, they’ll catch you in the end. I’ve known people who have gotten away with not paying all their taxes, or so they thought. It may have taken a number of years but the tax department finally caught up with them. Many lost everything, some ended up with massive loans to pay it back and some ended up in gaol for many years. Is it worth the risk?

Consider this statement, "If you are paying a lot of tax then you must be earning a lot!". Wear it as a badge of honour. Concentrate on earning more rather than trying to cut your expenses, it is a better use of your finite energy.

Paying Taxes May Reduce The Tax Burden

The more people cheat on paying their taxes, the more governments develop new ways to tax and need to increase taxes. If everyone just paid their taxes governments probably would not need to tax as much. This statement comes with the pre-condition that your government's policy is not to run the entire country, but to provide an environment where individuals can trade freely and profitably.