23 January 2013
Sir Though the question i am asking is not covered anywhere in ipcc syllabus,still i want answeres to this as this creates confusion in my mind. what is difference between tax evasion,tax avoidance and tax mitigation?
23 January 2013
Tax Evasion: tax evasion can be defined as paying less tax than you are legally obliged to. . Tax Avoidance : Tax avoidance can be said as doing everything possible within the law to reduce the tax liability. . There is a clear-cut difference between tax evasion and tax avoidance. Tax evasion is an offence whereas tax avoidance may be legally acceptable. . TAX MITIGATION:
Tax is mitigated by a taxpayer who willingly reduces his income or incurs higher expenditure to reduce his assessable income for reduction in his tax liability. .
CAclubindia
