Thanks for the reply J. Tax evasion is a criminal act and has a...

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    Thanks for the reply J. Tax evasion is a criminal act and has a clear definition in the eyes of the law. Basically it is the illegal underpayment of tax. Typically, it is the covert non disclosure of a liability or a fraudulent claim of benefits.

    Tax avoidance involves entering into legal arrangements that are designed to exploit "unintended defects and loopholes in the leglislation".

    Under the current tax legislation, both the Income Tax Assessment Act 1997 and Part IVA of the Income Tax Assessment Act 1936 deal with tax avoidance. There is a whole suite of regulations and rulings addressing anti-avoidance conduct and remedies available to the government.

    The current term in Australia for tax minimisation is called "tax planning". Basically that involves legally minimising the amount of tax payable. All "tax planning" needs to be carefully considered in order to ensure it doesn't get caught up in a specific anti-avoidance rule. Ignorance is no excuse in the eyes of the law ........... or something like that.

    Cheers
 
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