It’s critical that you understand Taxation Terminology and principles as an Entrepreneur. We are committed to providing guidance as it pertains to Organisational and Personal Financial Matters.
Below are our view on Tax Evasion from the Accounting& Advisory Team at Robley Baynes Tax & Accounting Services.
Tax avoidance involves the use of legal tax planning techniques to minimize a taxpayer’s tax liability. Examples of tax avoidance are:
- Purchasing qualifying assets which is Tax deductible under the Tax local provisions e.g. Solar Water Heaters.
- Paying funds to registered non-profit entities in order to use the related charitable deduction.
- Paying pre-tax income into a qualifying tax-sheltered retirement Pension plan or Annuity.
- Acquiring a mortgage in order to take advantage of the related tax deduction for 1st Time Property Owners
Tax avoidance schemes can be reduced by adopted a cleaner tax regiment that contains fewer provisions allowing taxpayers to reduce their tax liabilities.
The key distinction between tax avoidance and tax evasion is that tax avoidance employs legal means to minimize one’s tax liability, while tax evasion uses illegal methods.
At Robley Baynes we help you navigate through your Tax Planning& Tax Management policy and procedures to reduce your overall Tax Implications.