As stated many times by the class, Tax avoidance is the ability to lower ones taxes before a taxable event occurs. Tax evasion on the other hand occurs when a tax liability exists and is not reported as required by law. Also noted was that tax evasion must be the principal purpose. Also, the taxpayer is not guilty of tax evasion just because the tax consequences are considered.(Ch. 1, Paragraph 1131) There is a fine line between tax avoidance and tax evasion. The intent of the taxpayer should be evaluated as well.

Now, tax avoidance may be considered as either the amoral dodging of one’s duties to society, part of a strategy of not supporting violent government activities or just the right of every citizen to find all the legal ways to avoid paying too much tax. Tax evasion, on the other hand, is a crime in almost all countries and subjects the guilty party to fines or even imprisonment. Switzerland is one notable exception: tax fraud (forging documents, for example) is considered a crime, tax evasion (like not declaring assets) is not.” (Links to an external site.)Links to an external site.

We have heard from many of you. What do the rest of you think? Do you think tax avoidance is the amoral dodging of one’s duties or a right not to pay more than the law requires?