Quote:
Originally Posted by HarryT
If the companies are acting illegally, then of course they should be prosecuted, but what is the difference between "tax avoidance" and "minimising your tax bill by legal methods"? Can you explain for the benefit of us non-Australians?
Here in the UK, "tax evasion" is the crime of not paying the taxes that the law requires you to, but "tax avoidance" is employing legal methods to minimise your taxes, which is precisely what companies pay accountants to do.
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In Australia, we have Part IVA, which basically says that if you enter into a scheme with the sole purpose of avoiding tax, that scheme is illegal and can be declared void.
https://www.ato.gov.au/General/Gen/P...or-income-tax/