The difference between tax avoidance and tax evasion and the different instruments government might use to combat these

Type :

Term papers

Pages :

5 pages

Format :

.doc

Published date :

05/12/2009

Category :

Law & contracts

Sub category :

Fiscal law

Oboulo.com selection criteria

$ 10.95 Add to cart

Summary :

Introduction
Tax evasion
1. What is tax evasion?
2. Why does the tax evasion exist?
3. How to evade taxation
Tax avoidance
1. What is tax avoidance?
2. Why does tax avoidance exist?
3. How to avoid taxation
Decision to avoid taxation
Instruments used by the government to combat tax evasion and tax avoidance
Conclusion
Bibliography

Abstract

Taxation is everywhere in our daily life. People cannot always evade taxes. For instance, we pay tax when we buy goods therefore it is impossible to escape this kind of 'included tax".
tax avoidance and tax evasion are determinant for tax burden because they are one of the factors that fix the burden for taxpayer.

Individuals who work have to declare their income. Hereby they are confronted with their future taxes they have to pay. tax avoidance and tax evasion are different by their legality. Taxpayers are free to be honest in their tax return and contribute to the revenue of the government. That is why it is interesting to define tax evasion and tax avoidance in the first part. It will lead the essay to the analysis how an individual decides to avoid income or to reduce taxes. The last part will shed some light on the instruments used by the government to combat that.