

Well, sometimes, sure, yeah, of course!

How about

tax avoidance

and

tax evasion

? Same thing? What do you think?
Welcome to the second myth in our Tax Myth series…
Myth

Tax avoidance is illegal

Y’know, It ain’t!
Lets look at the 17th century

window tax

of good old William of

Orange

…
You have umpteen

windows

, you’re gonna have to hand over

wonga

for every window.

You decide to block some up… Clever – less windows, less tax to pay…

You decide to lie about how many windows you have…. Clever – less windows, less tax to pay..
But only one is illegal – which one?

NUMBER 2 is illegal

It would be classed as

TAX EVASION

consciously deciding to lie, to not declare income, to reduce your tax burden.

NUMBER 1 is TAX AVOIDANCE

Whilst sometimes still not morally correct, it could be viewed as you

organising your business and personal life

so that you pay no more tax that you should do…

Our advice

BE CAREFUL

out there……. There are many people that will tell you of kosher tax avoidance schemes…..

Really

Ask yourself, does it sound too good to be true? Then it probably is…
Big G has a useful ditty on tax avoidance here – its a bit dated, but the essence of it still stand…