Blog & Resources
Difference between tax minimisation (tax planning) and tax evasion?
Tax evasion is illegal while tax minimisation (tax planning) is not.
Tax evasion typically involves Individuals, Companies, Trusts and Superannuation Funds miss representing their accounting and taxation affairs (tax position) to the Australian Taxation Office (ATO).
In contrast tax minimisation or taxation planning, which is legal, uses the various taxation acts, regulations and various ATO rulings and guidance to reduce a tax position, i.e., pay the minimum amount of tax as required by law. Tax Planning doesn’t not have to be complicated. Even simple transactions should be considered, including Capital Gains Tax (CGT).
If you would like to discuss further please contact us:
McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
Phone +61 3 9428 1062
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