Tax Avoidance? Or Tax Evasion? Know the Difference
On June 16, 1931 Al Capone—the notorious gangster at the top of the F.B.I’s ‘Most Wanted’ list—was sentenced to 11 years behind bars for tax evasion. Tax evasion is an ugly phrase that runs hand-in-hand with words such as slimy, crooked, shady, corrupt. Those who purposefully and criminally evade paying their due in taxes are justifiably scorned as unscrupulous cheaters.
Unfortunately, there is a common, but mistaken, belief that tax avoidance is the same as tax evasion; that it is in some way shady and just a lesser evil than tax evasion.
This is not true. Tax evasion is the unlawful nonpayment or underpayment of taxes. Tax avoidance is entirely different: it is a perfectly legal and scrupulous practice employed by honest and upstanding citizens. Tax avoidance is simply arranging one’s financial affairs in such a way as to minimize tax liability within the law.
Learn how you can legally avoid sales and use tax on your next aircraft or vessel purchase. Read my full article today and don’t forget to call Tom!