Evasion or Avoidance… the difference between going to prison or not

Fiscal evasion

Fiscal evasion entails reducing or fully eliminating the payment of taxes through ILLEGAL METHODS. Tax evasion usually involves counterfeiting or concealment of the true nature of a business in order to evade fiscal responsibility.

Fiscal avoidance

On the other hand, fiscal avoidance is an attempt to reduce the payment of taxes contributors have to pay during their residence within the limits defined by the law. Tax avoidance relates to tax reduction WITHOUT VIOLATING THE LAW.

¿What is the main difference between evading and avoiding taxes?

  • Tax avoidance is regarded as a form of reducing fiscal responsibility without violating the law.
  • Instead, tax evasion is a crime usually paid with prison.