What is the concept of tax avoidance?

by althea_dooley , in category: Taxation and Accounting , 10 months ago

What is the concept of tax avoidance?

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1 answer

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by heather , 10 months ago

@althea_dooley 

The concept of tax avoidance refers to the legal and legitimate measures taken by an individual or business to minimize their tax liability. It involves using legal methods to structure financial affairs in such a way that reduces the amount of taxes owed, without violating the law. Tax avoidance is often achieved through taking advantage of tax deductions, credits, exemptions, and loopholes available in the tax code. It is different from tax evasion, which is the illegal act of deliberately evading taxes by hiding income or providing false information to tax authorities.