MANAGEMENT

Detailed explanation-1: -Tax Avoidance: Tax avoidance is an act of using legal methods to minimize tax liability. In other words, it is an act of using tax regime in a single territory for one’s personal benefits to decrease one’s tax burden.

Detailed explanation-2: -Tax evasion is an illegal method of minimizing tax liability. Tax avoidance, on the other hand, is a legal method of reducing the amount of taxes that you owe.

Detailed explanation-3: -1. Shifting a. the original payor or one whom the tax was assessed transfers the burden of tax to someone else.

Detailed explanation-4: -A: Tax evasion is a scheme used outside of lawful means to escape from one’s tax liabilities and, when resorted to, may result to civil and criminal liabilities. Tax avoidance pertains to tax saving measures within the means sanctioned by laws and regulations.

Detailed explanation-5: -Tax Planning: It is a legal process of reducing tax liability through various provisions in the tax laws, such as deductions, credits, rebates, and exemptions. It is legal and recommended for taxpayers to reduce tax burden.