What is the difference between tax evasion and tax avoidance?

Tax evasion and tax avoidance are terms used to describe different strategies that are used when dealing with taxes. Tax evasion is the illegal act of not paying taxes or deliberately underreporting income in order to reduce the amount of taxes owed. Tax avoidance, on the other hand, is a legal strategy used to minimize taxes owed. This may involve legally taking advantage of deductions, credits, and other forms of tax planning in order to reduce one’s tax liability. Tax evasion is considered a white collar crime and is punishable by the laws of Kansas. Tax evasion is a criminal offense and can result in hefty fines and potential imprisonment. Tax avoidance, however, is not illegal and is often encouraged by the government as a way to incentivize certain activities. In summary, tax evasion is an illegal action that can result in serious penalties, while tax avoidance is a legal act of minimizing taxes owed by taking advantage of deductions and credits available. Both are strategies used when dealing with taxes, but they are different in their legality and consequences.

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What is the difference between tax evasion and tax avoidance?

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