What is the difference between tax avoidance and tax evasion?

Tax avoidance and tax evasion are two distinct activities when it comes to dealing with taxes in South Carolina. Tax avoidance is a legal activity that involves minimizing one’s tax liability. It can be achieved by making the appropriate deductions and utilizing the credits that state and federal law allows. Tax avoidance is encouraged when filing taxes because it helps the taxpayer save money. Tax evasion, on the other hand, is an illegal activity. It involves failing to report one’s income, underpaying taxes, and concealing assets. In South Carolina, all individuals and businesses are required to accurately report their income and file their taxes in a timely manner. Tax evasion can lead to heavy fines, imprisonment, or both. The difference between tax avoidance and tax evasion is that, while tax avoidance is encouraged, tax evasion is a criminal act. Tax avoidance involves using legal and ethical methods to save money, while tax evasion involves deliberately underreporting income or concealing assets. Ultimately, when it comes to taxes in South Carolina, it is important to stay within the law and to be honest in reporting income.

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What is the difference between tax avoidance and tax evasion?

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