Differences between evasion and tax avoidance

Without any doubt one of the most violent scourges of our country is tax evasion . Every year tens of billions of euros are evaded to the tax authorities through illicit behaviors ranging from the failure to issue a fiscal receipt , to the artisan who receives black fees , to the great evasion with false invoices and dizziness figures of unpaid VAT. .

This leads to declarations of false or untrue income, to get to those who decides willingly not to declare anything . It seems incredible, but every year the agents of the Guardia di Finanza discover an impressive number of total evaders , people with large estates who for years have always declared themselves nullatenente.

To all this must be added a series of behaviors much more difficult to discover and to condemn, enclosed under the name of tax avoidance . The state is constantly working to improve the means by which to try to put this army of scoundrels against the wall, just to use a friendly term. Finance Guard Blitz , profitability and telematic receipts are just a few examples of the tools that are used to combat tax evasion . An often unequal struggle that sees the transgressors emerge victorious.

Tax evasion and avoidance: what is the difference?

The two terms are different but the final goal is the same: pay less taxes possible by not respecting or circumventing tax rules. The substantial difference lies in the limits and consequences at the criminal, administrative and sanctioning levels related to the two behaviors.

The ' tax evasion is all that set of fraudulent behaviors that are intended to conceal and counteract the tax levy.

Tax avoidance, on the other hand, can be considered the series of actions that have as their purpose the decree of the law to allow the tax expenditure to be reduced as much as possible. The border between tax evasion and avoidance is often a very thin line that is easily passed without even realizing it.

Ultimately, while tax evasion is in all respects a violation of a law , circumvention is instead a circumvention to allow the taxpayer to be respectful to the letter of the tax precept, seeking legal combinations of laws, or interpreting other , for the sole purpose of reducing the tax burden with operations, however border-line.

The sure thing is the administrative sanctions that are risked with both behaviors. For tax evasion, penal sanctions are also provided in some cases .

Tax evasion: definition and limits

As mentioned all the practices, actions, illegal behaviors implemented to reduce or eliminate the tax levy of the State against the tax payer, are to be considered violations of tax laws and therefore tax evasion .

One of the most typical examples of tax evasion is, for example, the failure to issue the receipt . Even the non-issuing of invoices or tax receipts is one of the preferred behavior of tax evaders.