what s the difference between tax avoidance and tax evasion 
tax avoidance is a legal way for taxpayers to avoid paying taxes they can do so by using the tax credits deductions and exclusions that are part of the tax code to their advantage using these strategies can help them either avoid paying taxes altogether or lower their tax liability tax avoidance can be illegal if a taxpayer abuses these strategies and doesn t follow tax laws tax evasion is the deliberate failure to comply with tax laws taxpayers evade tax assessment and payment of their taxes tax evasion can entail hiding income offshoring income in areas that don t comply with a taxpayer s home country falsifying tax records and inflating expenses tax evasion can result in fines penalties levies and even prosecution 