While many people may think tax avoidance and tax evasion are the same thing, they are not.
Profession Wheatcroft, of the Faculty of Law at Oxford University, defines tax avoidance, as dodging tax without breaking the law. Tax evasion is, however, where someone deliberately avoids paying tax by hiding how much they earn. This is illegal.
There are taxpayers that rely on investment arrangement schemes to try to reduce their tax liability. The Australian Taxation Office believes that even experienced investors can be conned into sophisticated ‘tax avoidance investment schemes’. These schemes make investors believe there will be a tax benefit, while really they trigger a larger tax debt.
Tax Avoidance