- 5 Marks
AT – May 2018 – L3 – SB – Q4a – Ethical Issues in Tax Practice
Differentiate between tax avoidance and tax evasion with key distinctions and implications.
Question
The tax authorities view any case of tax evasion seriously. They are empowered to set aside tax avoidance schemes that result in artificial or fictitious transactions. Tax evasion is usually more prevalent when the tax system is perceived to be unfair.
Required: Differentiate between Tax Avoidance and Tax Evasion. (5 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Fraudulent Tax Reporting, Legal Loopholes, Tax avoidance, Tax Compliance, Tax Evasion
- Level: Level 3
- Topic: Ethical Issues in Tax Practice
- Series: MAY 2018
Report an error