AVOIDANCE & EVASION-2.ppt - TOPIC:TAX TOPIC:TAX AVOIDANCE...

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TOPIC:TAX TOPIC:TAX AVOIDANCE, EVASION AVOIDANCE, EVASION & PLANNING & PLANNING TOPIC:TAX TOPIC:TAX AVOIDANCE, EVASION AVOIDANCE, EVASION & PLANNING & PLANNING Nyantamba, G (2018) Nyantamba, G (2018)
subtopics Tax avoidance Tax evasion Tax planning
Introduction The problem of tax avoidance and evasion is inherent in all tax systems. The evil of tax avoidance and evasion in particular is planned and undertaken in secrecy by the tax payer and sometimes in collaboration with the tax consultants and tax auditors. Tax avoidance and evasion cannot be eliminated completely but can be minimized
TAX AVOIDANCE Meaning: Is the practice and technique whereby one so arranges his business affairs such that he/she pays little or no tax at all but without contravening the tax laws/statutes/provisions OECD defines arrangement of a taxpayer's affairs that is intended to reduce his tax liability and that although the arrangement could be strictly legal it is usually in contradiction with the intent of the law it purports to follow
Avoidance cont… Reduces, postpone or relieve any tax liability Takes the advantages of any weakness and loopholes, deficiencies and loose or vague clauses legally allowed/accepted When detected the only solution is to amend the law to eliminate the weakness
Tax avoidance arrangements

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