The art of dodging tax without actually breaking the law or lawfully carrying out of taxation to missing tax liability. Tax avoidance is said to be legal if it does not break the law.
Contrasted with  tax evasion-non payment  of  due  tax  that  law charges on ones income.Legislture  may  proceed to seal  loopholes that give a tax  avoidance opportunity while tax payers look for opportunities within law that limit payment of taxes.
Reactions have been varied. The judiciary tends to be friendly if the taxpayer has not stretched the law to engage in tax avoidance.
Lord Sumnre in I.R.C v Executors  observed the highest authorities  have  always  recognized that  subject is entitled so to arrange his affairs as  not to attract taxes imposed by  the crown so far as he can do  so within the law and that he may legitimately claim advantage of  any terms or omissions he can find in his favor  in the taxing statutes in so doing, neither has a liability nor incurs claims.

Levin v I.R.C
His  majesty subjects are free  if they  can, to make their own arrangements  so  that their cases may fall outside the scope of taxing Acts, they incur no legal  penalties and no  moral censure  if having considered lines drawn by legislature for imposition of taxes they make it their business to work outside them


Like Us on Facebook

Contact Form


Email *

Message *