Tax evasion is illegal while tax avoidance is legal.
Evidence
Tax evasion is escaping payment of taxes by illegal means, such as hiding income or claiming fictitious dependents. Tax avoidance is escaping payment of taxes by legal means, such as buying tax-exempt securities or investing in a tax-deferred pension plan. — Bryan A. Garner, Jeff Newman, Tiger Jackson, The Redbook, 1175
Categorization
- DEFINE: Clarifies a pair of legal terms that carry opposite legal consequences.
- XREF: connects to: Contractor tax avoidance costs government more than any savings it brings; Legally enforced inspection lowers trust needs; tax avoidance drives illegal-exchange demand for guarantors; Tech companies evade taxes easily because they move only intellectual property — Nick Srnicek, Platform Capitalism, 35