Briefly explain the meaning of the following terms: (i) Tax planning. (ii) Tax avoidance. (iii) Tax evasion.

Briefly explain the meaning of the following terms:
(i) Tax planning.
(ii) Tax avoidance.
(iii) Tax evasion.

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i) Tax planning: Tax planning involves the arrangement of the affairs of a person in order to avoid or reduce liability to tax and to reap maximum tax benefits where appropriate.
ii) Tax avoidance: These are the measures or strategies that an individual or institution can employ in order to minimize their liability to tax. This is done within the existing regulatory and legal framework. Unlike ?tax evasion. Tax avoidance is legitimate.
iii) Tax evasion: This is an attempt to try to reduce the tax liability through fraudulent means and its illegal.

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Wilfykil answered the question on February 13, 2019 at 08:24

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