Tax evasion can bedefined as efforts byindividuals, companies,trusts, and other legalentities to illegallyevade payment of taxes.
Whereas, tax avoidance is using the law toone’s own advantage to reduce liability fortaxation. Tax avoidance is perhaps better andcommonly described by professionals as taxmitigation .
An early example of this in England and Wales was to fill in windows to avoid paying the ‘window tax’ introduced as a wealth tax in 1696.
Even the United States Supreme Court has stated:‘The legal right of an individual to decrease theamount of what would otherwise be his taxes oraltogether avoid them, by means which the lawpermits, cannot be doubted’.
Tax mitigation is clearly not only legitimate butshould be considered a key component of yourfinancial planning.Benefits can be maximised with careful considerationto your nationality and tax domicile, your currentresidence, double taxation treaties, banking, assets,and investments. The principles apply to bothindividuals and companies.
This presentation is forinformation only andshould not beconsidered advice.Contact me on:+86 147 8237 1084