Evading Tax To Save Money. Is It Legal?

Discussion in Savings & Investments Plans started by NicholasMukuha • Oct 6, 2017.

  1. NicholasMukuha

    NicholasMukuhaActive Member

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    We are all familiar with the saying, give to Caesar, what belongs to Caesar. From where I come from there are several types of taxes, such as PAYE, where tax is collected from individuals with gainful employment, Corporation tax that is levied on companies, Withholding tax that is charged from various sources and Advanced tax that is charged from public service vehicles.

    However, not all people welcome the idea of paying taxes. Considering the struggles of life, then every coin needs to be put to good use for personal development or saved for future use. My question is, if one has the chance of evading paying taxes to boost their savings, can they do it conscious free?
     
  2. Jamille

    JamilleActive Member

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    Tax evasion is illegal, tax avoidance is not. There's a world of difference between the two. One can land you in jail and sea of penalties while the other can help you save money. Employees can hardly do anything about their taxes as these are collected by employers.

    Any business, I'm sure, will want to take advantage of tax breaks or loopholes to save money. We'd like to maximize the exemptions and claim expenses as much as we can - that we do consciously and consistently and that is called tax avoidance. As long as the expenses are substantiated, within the limits of the law, and related to the business, a company can claim them as expenditures against the gross income.

    However, not reporting or under-reporting of gross revenue is illegal and constitutes tax evasion. But then again, there are types of businesses where this is possible, and some are able to get away with it. These business include underground economy and income generating activities beyond the current scope of income determination by tax authorities.
     
  3. mildredtabitha

    mildredtabithaActive Member

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    Someone said that when you do something wrong with the right intentions, you have done the right thing. Evading tax could be wrong but since you just want to save, then that is not really wrong in the end. We live in a country where we don't see our taxes put into use. You feel like the money given out as tax is the same as throwing your money away. As long as you will never get caught, keep saving. And after saving enough, go back into paying tax :D
     
  4. luri

    luriActive Member

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    Evading tax is illegal, if caught you will have to pay a penalty (and you end up paying more than what you were supposed to pay), tax evading can also land you into jail. I think there should not be a problem in paying tax, you pay tax on the money you earn, more earn more tax yopu pay.
     
  5. onliner

    onlinerNew Member

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    Many people lack faith in systems especially the government. With rampant corruption and misappropriation of public funds, I don't think anyone should feel guilty about evading tax.

    The money will end up in someone's pocket anyway, what's wrong with just keeping it?
     
  6. Alexandoy

    AlexandoyWell-Known Member

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    Pardon me for this comment but committing something illegal is not in my policy. What if it backfires and you are caught? You will be fined and worse, you can even go to jail. My advice is to seek the help of an accountant on the legal ways to reduce your taxes. That's the best recourse.
     
  7. Theo

    TheoWell-Known Member

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    Tax evasion is illegal, tax avoidance schemes are not though, but frowned upon. It depends on the laws of your own country and also it's best to use an accountant so that they will know what is legal and what isn't. The risk of getting caught could cost you more, so it doesn't save you money in the long run. You have to look at how much you are actually saving, because many items are tax deductible depending on your tax laws.
     
  8. Kimika

    KimikaActive Member

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    Tax evasion is a crime so I do not recommend you do it. but there are certain ways to lessen the tax without getting sued by the government. I do not know the exact procedure but what I do know is corporations do this kind of stuff to lessen the amount of tax they are paying. It isn't illegal, they just know how taxation works.
     
  9. overcast

    overcastActive Member

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    In some countries this is punishable offense. And it could lead to lifetime sentences. And that's something we have to consider. Some countries may allow it. And now with the cryptocurrency it can be possible for the money transfer as well. So we have to consider what can be applied and what can be done in that case. You would have to think about the consequences when you're dealing with the tax evasion and the money holding into the side.
     
  10. Heatman

    HeatmanActive Member

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    From where I come from, evading of taxes is purely illegal and is punishable by the law. Anyone charged and convicted of tax evasion is subject to paying such tax in full with extra commission if he/she plead guilty or failing to pay and be subjected to serving jail time.

    The reason why I think most people try to evade tax payments is their in ability to pay it as and at when due. And this would pile up a huge debt for them to pay in the long run which they now sought to evade paying such money to the state authorities.
     
  11. NinetyEighty1

    NinetyEighty1Active Member

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    I would not recommend it, it is illegal and it will cost you much more than you are willing to pay, and I am not just talking about money. I am sure there are other ways to work your way around the system so that you will not have to pay large sums of cash but avoiding tax isn't one of them.
     
  12. Heatman

    HeatmanActive Member

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    Exactly my point @NinetyEighty1@NinetyEighty1, one might think he or she done one and get free from paying such but on the long run when investigation is carried out on how taxes are being paid, such individual would definitely be rooted out and if the person is lucky, he or she would avoid jail time and pay all the taxes evaded and avoided with compensation.

    I can cite a good example with the case of Lionel Messi, Neymar, Christiano Ronaldo, Deni Alves, Jose Mourinho etc. Each of these people had cases of tax evasion/avoidance, and were almost convicted if not for one reason or another but they later paid it full with interest.
     
  13. walter12

    walter12Active Member

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    I would not recommend anyone to evade taxes as the consequences can be pretty severe and serious, since you can face jailtime.
     
  14. Heatman

    HeatmanActive Member

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    @walter12@walter12 It's not even only the jail time that one should be worried about as the consequences of evading tax and getting caught but also the denting of one's public image and ridiculing such individual on social media, probably news papers and television network news. This is not a good way for one to lead his or her life, it's something that creates a bad lasting impression about someone in the eyes of the people, likely those that such individual associate and deals with. Personally, I would lose trust and confidence in such person.
     
  15. wallet

    walletActive Member

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    I think that the conscious works and if you are doing this you will have no rest. Believe I have done it and now I live with the fear that they will force me to pay all taxes from the past and I must say that is a big sum.
    I do not advise anyone to do such thing!
     
  16. Nakitakona

    NakitakonaActive Member

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    Tax evasion per se is punishable by law. Tax is the lifeblood of the government. As you mentioned there are different types of taxes depending on the sources of people's income.

    If you're working and earning, paying your is your legal obligation. And there are many ways of paying an income tax. It may be quarterly, semi-annually or yearly. It may individually, by company or agency and corporate.

    And there are people who are exempted of not paying their taxes depending on their income range which may fall for exemption.

    But not paying tax to save money is illegal especially if you're working or earning from a small or big business industry.
     
  17. walter12

    walter12Active Member

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    I relate so much to what you have said in the first phrase in regards to always being worried, there is nothing worse than that feeling.
     
  18. Heatman

    HeatmanActive Member

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    [wallet ="wallet, post: 262250, member: 21796"]I think that the conscious works and if you are doing this you will have no rest. Believe I have done it and now I live with the fear that they will force me to pay all taxes from the past and I must say that is a big sum.
    I do not advise anyone to do such thing![/QUOTE]

    @wallet@wallet This is so true, being successful in evading taxes is not the hard part but staying one or two steps ahead of the tax authorities in order not to get caught of the act of the tax evaded is the most difficult part. One would be ever ready with scheming and devising ways not to surface under the radar of the tax authorities because once they get a scent of you, it's how you paid the taxes that would make the headlines because you would definitely be forced to pay it in order to avoid jail time.
     
  19. walter12

    walter12Active Member

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    I agree, not only is it illegal and you can face serious charges you are also risking everything you ever worked for for small amount.
     
  20. NinetyEighty1

    NinetyEighty1Active Member

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    Exactly, really if you would like to pay less taxes you have a couple of options. Get more familiar with taxes, the system and how it works and too get around it. I'm sure there are plenty of online videos and books that will help. If that doesn't work, then hiring someone to help you out and give you tips to pay less taxes may help.