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wariber [46]
4 years ago
8

Discuss whether or not the below listed actions are tax avoidance or tax evasion. Then, discuss the ethical implications of empl

oying each of these in a tax return. Keeping a log of business expenses Ignoring earnings from a lawn mowing business Not reporting interest earned on a savings account Keeping a log of contributions to a charity Not reporting tips Claiming your dependents as tax deductions
Business
1 answer:
9966 [12]4 years ago
5 0

Answer: Keeping a log of business expenses Ignoring earnings from a lawn mowing business (Tax evasion )

Not reporting interest earned on a savings account ( tax avoidance )

Keeping a log of contributions to a charity ( tax avoidance )

Not reporting tips Claiming your dependents as tax deductions ( tax evasion )

Explanation: by keeping a log of expenses and ignoring the income of a lawn business you are deliberately carrying out tax evasion because you are not declaring your total earnings and profits.

By not reporting interest earned on a savings account you are devising a means to pay a lower tax legally.

Keeping a log of donations to charity

this is a perfect example of tax avoidance because by donating to charity you are trying to avoid paying high taxes legally.

By not reporting tips earned you are trying to evade paying additional tax.

B. Usually when you engage in tax evasion you risk exposing yourself to greater cost, which usually higher than normal. Once discovered fine payable can be as much as three times the amount concealed.

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3 years ago
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