01 October 2013

Offshore Investment (October 2013) : The legitimacy of tax planning

The blurring of the distinction between tax avoidance and tax evasion may be a cynical attempt by governments and revenue authorities to seek to prevent individuals and corporations from maximising their tax savings by the use of legitimate tax planning properly permitted by the law. Key terms like "tax avoidance", "tax planning" and "tax mitigation" are really important basic building blocks in respect of an understanding of domestic and international taxation, and they are not sufficiently clearly understood or defined. We need to have these terms better understood and clearly defined, particularly at governmental and inter-governmental levels.

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