Tax Avoidance and Tax Evasion

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A Leading Avoidance & Evasion Of Tax For Your Benefit

Tax evasion means hiding income or information from the income authority avoidance means legally reducing your taxable income. Tax evasion and tax avoidance are two different things that have and it’s illegal. Tax different definitions and different consequences.
Know details about Tax Evasion and Tax Avoidance With Network BD
Tax Avoidance and Tax Evasion

Tax Evasion In Bangladesh

Tax evasion in Bangladesh  hides one’s total taxable income as per taxation law to reduce tax payment. It’s a deliberate failure of the taxpayers, especially in developing countries like Bangladesh, it is a serious problem to come up with solutions.
Tax evasion using illegal methods to conceal income or information from the IRS or other tax authorities. Tax evasion can result in fines, penalties and / or imprisonment.

Tax Avoidance In Bangladesh

The use of legal methods to reduce tax liabilities, especially to reduce the amount of income tax of an individual or a company. Though it’s accomplished by claiming allowable deduction and credits, it can also be achieved by prioritizing investments that have tax advantages.
Tax avoidance is the use of legal means to reduce taxable income or arrears. Approved tax deductions and tax credit claims are common strategies for investing in tax exempt accounts.

Learn The Difference Between Tax In The Form Of Avoidance And Evasion With Our Experts

The difference between tax evasion and tax evasion depends largely on two factors: lying and concealment.
Tax avoidance is a legal process to make sure that a taxpayer can reap the best outcome by calculating and structuring one’s transactions, which is also a wise step to be taken. ­Tax avoidance is actually the legal means of finding the loopholes remaining in the legal actions or requirements of taxation to pay the minimum tax possible, and tax evasion, on the other hand, refers to totally illegal measures taken to avoid paying taxes. Both these ways of minimizing taxes result in countries being short in tax and local people suffering from it.

We Are Ready With Tax Avoidance & Evasion Arrangements

A tax evasion system usually consists of a system that has no artificial, fictitious or little or no commercial substance and is designed to provide a tax benefit that is not intended by Parliament.
Tax evasion is a criminal offense that involves reducing the tax liability of a car or illegally obtaining a tax credit or refund such as fictitious or non-existent expense claims and failure to declare taxable income.

Our Assistances In 7 Methods of Tax Avoidance in Bangladesh

 

 

 

1. Underpricing:

underpricing is used to avoid a prorate import duty for a reduced tax base.

2. Ambiguity of Tax laws:

all the remaining tax laws, that leaves the taxpayers unclear of any remaining term is a prospective source for the taxpayers of tax avoidance.

3. Forming Distinct legal entities:

legal entities as trusts or foundations, assets that are donated for the welfare of one’s property to release gains or income earned is another tactic to avoid tax.

4. Minimizing Tax liabilities:

multinational companies manipulate the prices of goods and falsify the prices of the products and intangible assets to minimize tax liability.

5. Transferring properties:

one can avoid tax liability by transferring their property to their significant others or to their dependent child to reduce tax liabilities.

6.Creating Private limited companies:

by creating private limited companies with near and dear people, an individual can minimize their tax liabilities.

7. Transferring profit:

any business organization can minimize their tax liabilities by transferring part of their profit prior to converting it to the capital can be another tactic of tax avoidance.

 

Our Dynamic Solutions To 7 Tax Problems

 

1. High tax rate:

High rate of tax is one of the main reasons for tax evasion in Bangladesh. Corporate tax rates are higher in Bangladesh, which prevents this problem from being sorted out.

 

2.  Corrupted income Tax Department:

Corrupted higher levels of bureaucrats and government officials has increased the size of the informal economy and thus increases tax evasion in the country.

 

3. Political Turbulence:

political turmoil provokes tax evasion as the politicians try to control tax administrators and taxpayers to achieve control over them and the process.

 

4. Lack of Information:

to detect and reduce tax evasion, it is important to detect it first, as information asymmetry is one of the main barriers that a tax administrator faces while detecting the problems which makes a taxpayer capable of hiding their tax liabilities.

 

5. Insufficient tax Administration:

inefficient and inadequate tax administration increases tax evasion in the country, as poor level of enforcement always encourages tax evasion.

 

6. Inadequacy and complexity in Tax laws:

Bangladesh has the most tough tax regime for anyone which encourages the dishonest taxpayers to evade taxes using the obscurity of the taxation system.

 

7. Lack of knowledge:

as in Bangladesh, taxpayers are not really knowledgeable, and since information found from the government is complex and confusing, taxpayers find it easier to evade taxes than to go through the obscurity and clarify their tax liabilities decided by these tough to explain laws.

Tax Planning For The Best Long Term Outcome

Considering the above, staying within the language and consciousness of the law is essential for a legitimate tax plan. Transactions must be conducted for commercial reasons and should not avoid or reduce taxes as one of its main objectives.
We work closely with you to identify tax strategies in your organization and to manage tax compliance.

Minimizing Taxes with NetworkBD’s Efficient Tax Planning

 

 

Advanced planning can help minimize taxing. All tax planners use one of these strategies to minimize the payment of taxes and to structure transactions for the lowest possible marginal tax rate:

  1.       Minimize taxable income
  2.       Maximize tax deductions and tax credits
  3.       Controlling the time of income and deductions
Get 4 processes explained in Details:

There are many subtle points to be clear to a taxpayer and a tax planner. In details, the methods of best taxation planning are as described below:

  1.       Solid estimate of personal and business income is required to plan effective taxation for a stable and long period of time. A stable income or expense projection is needed as some tax planning strategy that lowers taxes on one income can result in the increase if income rises in the next few years.
  2.       One should be projecting their sales revenues, income and cash flow for general business planning purposes to have available information accurately to plan the best way possible.
  3.       Deductions and credits also minimize taxes. If one’s goal is to reduce the amount of tax, they can do it by-  a)       taking full advantage of every available deduction to reduce the taxable income  b)     determining the unsettled tax due and claiming every tax credit available.
  4.       It’s important to know whether to claim a credit or a deduction, as a credit reduces the amount of tax bill pie to pie while the value of a deduction is affected by the marginal tax rate.

Choose NetworkBD To Avoid All Penalties

We offer tax planning to our clients who are in need of it. We serve in different ways, like:

  1. We learn the details of a client’s income, both business and personal income firstly before planning.
  2. We offer tax planning to minimize the amount of tax payables and maximize the outcome.
  3. We provide our clients with detailed planning so that they know what they are up to. 
  4. We have a team of taxation experts who are always alert to provide help in need.
  5. Our experts will not go for only loopholes, rather they are always willing to understand the needs of our clients to ensure the get the best tax planning and advice from our proficient team. 

FAQ

What is the main difference between tax evasion and tax avoidance?

Tax evasion means hiding income or information from the tax authorities – and it’s illegal. Tax avoidance means legally reducing your taxable income.

Is tax evasion legal?

 Tax evasion may be a controversial area of ​​the tax system but tax evasion is certainly not. Tax evasion is illegal. It’s as simple as that. Illegal practice of not paying taxes, not reporting income, not reporting illegal expenses or not paying taxes.

Why is tax evasion considered legal?

 Tax avoidance reduces your tax bill by structuring your transactions so that you get the most tax benefits. Tax avoidance is completely legal and highly intelligent. Tax evasion, on the other hand, is an attempt to reduce your tax liability by cheating, dispersing or concealing. Tax evasion is a crime.

What if you don't pay taxes?

If you find a government tax payer, the interest will continue to rise until you pay. If you owe government taxes, interest will continue to rise until you pay. There may also be fines. I missed my income tax return deadline.

Plan Your Tax Now For A Profitable & Legally Safe Future

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