http://claimbackmytaxes.com Tax Evasion versus Tax Avoidance by Richard Sherry

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Hi, this is Richard from claimbackmytaxes.com. You are here because you know you pay too much in income tax each year. You see those deductions on your paycheck every month and you know that it is a big chunk of the money you make. I am here to tell you that you do not have to pay all that tax at the end of the year. That you can get back all of that income tax, I can show you how it happens, how it works, why it works and why you should do it.

I am going to talk about the difference between two key concepts in taxation. The first is tax evasion and the second is tax avoidance.

The simple explanation of the two of them is that tax evasion is illegal and tax avoidance is not. In fact it is your right. Tax evasion happens when somebody does not report income on their income tax return, or uses deductions that are not proper or are not allowed in order to reduce their tax burden. People get arrested for that and get fines and jail time.

Tax avoidance occurs when the tax payer arranges their financial affairs so that they lower the amount of tax that they have to pay. For example, a married couple might put an investment in the name of the spouse that makes the lower income. So that when profit is realized when that investment is sold off, then the lower income spouse claims that money, pays lower taxes. That is tax avoidance, perfectly legal. Tax avoidance is something that many Canadians pay absolutely no attention to. It is entirely technical, involves a bunch of numbers, and it takes a lot of time. It is funny, I have noticed people would drive kilometers out of the way to save a few bucks on a tank of gas but they would not spend a few hours learning about things that could save them thousands and thousands of dollars each year.

Well, that is what I am here to do. I am here to help you learn how you can cut your income tax, put that money into savings so you can grow it for the future. You can learn more about how to do that by visiting my website at www.claimbackmytaxes.com .

Category:

Education

Tags:

• income tax
• tax shelter
• MissionLife
• GLGI
• CHT
• tax refund
• tax credits
• tax savings