Page 43 - Taxation F6 - The South African Tax System
P. 43
Tax Avoidance And Evasion.
• There is a distinction between tax evasion and avoidance.
• Tax evasion refers to the illegal activities of deliberately
avoiding tax.eg taxpayer omits income from his tax return.
• It is an offence and is subject to penalties.
• Lets talk about tax evasion charges against Julius malema.
• Tax avoidance means the taxpayer has arranged his tax
affairs in legal manner with a result of reducing his tax
liability.
• Tax avoidance = tax planning
• However SARS has put in place specific provisions to
counter the tax avoidance schemes.
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