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Accounting and finance functions within business

4.3 Determining business tax liabilities

One of the roles of the finance and treasury function is to calculate the business tax
liability for the organisation and mitigate, or reduce, that liability as far as possible
within the law.

Tax avoidance is the legal use of the rules of the tax regime to one’s
own advantage, in order to reduce the amount of tax payable by
means that are within the law.

Tax evasion is the use of illegal means to reduce one’s tax liability,
for example deliberately misrepresenting the true state of your affairs
to the tax authorities.

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