What is the difference between tax evasion and tax avoidance?
Tax evasion and tax avoidance are two distinct concepts within international tax law, specifically as it applies to Florida. Tax evasion is an illegal activity in which an individual or business entity attempts to illegally avoid paying taxes by misrepresenting their income, expenses, or by falsely claiming deductions. Tax evasion can include filing incorrect tax forms, not filing taxes at all, or falsifying documents to conceal income or misrepresent financial situations. Tax avoidance, on the other hand, is a legal activity in which an individual or business entity attempts to minimize their tax liability by taking advantage of tax deductions or credits allowed by the government. Tax avoidance involves activities such as reducing taxable income, taking advantage of deductions, and exploiting loopholes within the law. While tax avoidance is legal, it is important to be aware of the rules and regulations of international tax law as one cannot intentionally structure their taxes around the laws to avoid paying taxes they should be legally obligated to.
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