Tax Avoidance
When you Google the phrase ‘Legally reduce tax’ thousands of search results appear. The words ‘tax avoidance’ and ‘tax evasion’ are key words that usually appear when you type in the phrase.
Many people may think tax avoidance and tax evasion are interchangeable words. They are not.
Tax avoidance, as defined by Professor Wheatcroft from the Faculty of Law at Oxford University, is ‘the art of dodging tax without actually break the law’. It is different to ‘tax evasion’ in which the entity deliberately avoids paying tax by hiding the income, thus breaking the law.
Some taxpayers rely on investment arrangement schemes in an attempt to reduce their tax liability. The Australian Taxation Office has stated that even an experienced investor can be easily trapped into sophisticated so-called ‘tax avoidance investment schemes’. In such schemes investors believe there is an entitlement of tax benefit but in reality trigger a large tax debt.
Please call us on 02 9318 6400 or email fred.tortora@surrypartners.com.au if you would like more information.