CIMA F1 Syllabus C. Fundamentals Of Business Taxation - Tax Avoidance and Evasion - Notes ^{2 / 7}

This is LEGAL

It's just planning your tax affairs to pay as little as possible

This is ILLEGAL

Such as not declaring income - or making fictitious expenses

Defences against tax evasion

• Taxing at source as much as possible

• Keeping the tax system simple

• Efficient checking of tax returns

• Good communications between tax authorities and taxpayers

• Maximising and publicising penalties

• Making sure the tax system is fair

• Change social attitudes by developing an honest and customer friendly tax system