What are the differences between double tax avoidance and tax evasion?

Double tax avoidance and tax evasion are two different concepts in international tax law in Pennsylvania. Double tax avoidance is an agreement between two countries that is designed to prevent a taxpayer from having to pay the same tax twice on the same income. The agreement specifies the obligations of each country in the avoidance of double taxation and allows any taxes collected by one country to be credited against liability in the other. Tax evasion, on the other hand, is an illegal method of avoiding paying taxes. This involves intentionally disobeying tax laws and regulations, often by not declaring income in order to avoid paying taxes on it. It can also involve using fraudulent means such as misrepresenting income or expenses, or creating false records. Tax evasion is punishable by fines and imprisonment in Pennsylvania. The main difference between double tax avoidance and tax evasion is that double tax avoidance is a legal way to prevent double taxation and is encouraged by the government, while tax evasion is illegal and punishable by the law. Double tax avoidance also requires agreement between two countries, while tax evasion only requires a taxpayer to deliberately disobey the law.

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What are the differences between double tax avoidance and tax evasion?

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