Business Taxation Essay Example | Topics and Well Written Essays - 500 words - 1

Business Taxation - analyze Exampleis legally used to the tax income payers advantage to reduce the amount of tax that is to be gainful to the government precisely this is all done while staying within the boundaries of rectitude, just the tax regime is manipulated in a manner so as to reduce the amount of tax.The difference between evasion and shunning as highlighted above is that evasion is something which is outside the boundaries of law and can be punished by law if the evidence for tax evasion is found out by the tax authorities of the country but tax avoidance is something which is done within the prescribed boundaries of the law and the tax regime and is not punishable by the law of the country, the difference can be slight but it could lead to severe consequences, for suit in countries like the USA tax evasion is a serious matter and could lead to impoundment if evidence is found of tax evasion against a company or a person.The canons of taxation were true by Adam Sm ith and are still widely regarded as the best parameter to sound out the effectiveness of a tax regime in a country. It is a set of rules to judge whether the tax regime is a good one or not or if any changes need to be made to the tax regime, it also helps identify in which areas the changes have to be made.2) The timing and the amount of the taxes that a payer has to make must be certain to him and they should be known well before the retribution time so that gives him adequate time to calculate and make arrangements for the payments.The canons of taxes have provided the guidelines for any government to watch out and develop a fair and a convenient tax regime and tax collection and impose it with the point of view of being convenient to the tax