| Comment | Tax avoidance is just good planning. One example is using salary sacrifice to pay into your pension, you don't pay tax on the contribution.
Tax evasion is hiding income from the tax man which *should be* taxed.
Once one gets into complicated matters (sheel companies, trusts etc) avoidance can easily become evasion, or at least look like it.
The tactics used for evasion (beyond the simple tactics like not recording income) tend to only be available to the wealthy who can afford the right accountants and lawyers. HMRC should crack down on this activity, but their senior managers are in bed with the evaders and we have run down the number of inspectors. |
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