Avoidance/evasion

May 12, 2008, 08:39 AM

Authors : Daniel

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Post date : May 12, 2008, 08:39 AM

Not even the Revenue seems to understand the difference between avoidance and evasion, I recently heard a tax expert quip.
If HMRC don't know, we can hardly criticise anyone else for making mistakes, can we?
Should we forgive today's Metro for believing 'tax avoidance' and 'tax evasion' are interchangeable terms?
Okay, just this once.
After all, the freesheet's two-paragraph story - 'Tax dodgers "kill 1,000 under-5s"' (not available online) - is based on an equally confused report from the charity Christian Aid (the main thrust of which is covered on the Taxation site).
And 'evade' is a synonym of 'avoid'.
Although one might hope that HMRC and professional reporters might try to remember the difference between the two tax terms, so here's a very brief guide.

Tax avoidance is legal: void of legal consequences.
Tax evasion is illegal: 'ill' as in 'poorly', which is a bad thing - but not 'ill' as in the urban slang for 'cool', which is a good thing.

Clearer now?

To return to the clear-headed Taxation.co.uk, click here.

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