ACCA TX UK Syllabus A. UK Tax System & Administration - Tax Avoidance And Tax Evasion - Notes 3 / 5
Tax EVASION is ILLEGAL
The main forms of tax evasion are:
Not giving all information
Giving false information
Tax AVOIDANCE is LEGAL
It's arranging your income to minimise tax - although HMRC are introducing anti-avoidance legislation to lower the advantages to the taxpayer
Tax avoidance features..
No misleading information given
Can use loopholes in the tax system
The General Anti-Abuse Rule (GAAR)
This fights artificial and abusive schemes (unreasonable courses of action) which are used to avoid paying tax