Most people, at least the folks on the street, may wrongly misinterpret the meaning of one from the other, avoiding and evading taxes.
Avoiding taxes is legal, evading taxes is illegal and cheating.
For instance, at least we know, that in the USA and many other countries around the world, mortgage interest is a allowed deduction to reduce your taxable income. The government has allowed mortgage as a tax deduction to provide an incentive for people to purchase houses, at least one such reason. Since this deduction is legally allowed, you can avoid paying higher taxes by making use of the law to lower your tax bill.
On the other hand, people who conceal income or over-report deductions, or hide income in tax havens are evading taxes (cheating). All governments impose prison and financial fines on people who evade taxes. So be careful of the lexicon you use when talking of reducing your tax bill.
While the tax season is hot, you also want to avoid scammers who try to avoid taxes for you but scam to rob you.
Disclaimer: References to Personal Finance are strictly for "educational purposes" and does not hint or offer any specific financial or tax advice. For financial advice, please seek the advice of a professional if you feel unable to handle your own finances/taxes.
Dear Merrill,
I was surfing the web and came across your website/blog. I am a former UNICEF staff (1983-2003) now working with UNFPA since 2003. Ill retire in Jan 2011. Ill like to seek your advise on U.S. taxes on lumpsum payment. Or you can recommend me to a tax professional who is familiar with US tax laws with specific reference to UN pensions. I joined UNICEF as a national officer and became a U.S. Permanent Resident in 1992 and a naturalized US citizen in 2000. Please send me your e-mail so that I can give you more information and continue our dialog. My e-mail is chen@unfpa.org
regards
Peter Chen
Regional Team Coordinator
UNFPA Africa Regional Office
Posted by: Peter Chen | November 17, 2008 at 05:19 PM