top-marginal-tax-rate1Marginal tax rates are usually much higher than actual part of taxes in gross domestic product. Although in the US the majority of citizens subject to marginal tax rates on income from 15 to 28 percent, the share of income tax of individuals in gross domestic product amounts to an average of 10 percent. This difference can be explained by the existence of tax relief and widespread tax avoidance and tax evasion.

Non-payment of taxes has two aspects: legal or acceptable tax avoidance in which the Anglo-Saxon literature, there is the name of tax avoidance and illegal, punishable tax avoidance or tax evasion, which is in the same literature as tax evasion.

Tax evasion (tax avoidance) is defined as the full use of all opportunities to reduce tax liabilities provided by law. In many countries a real army of tax advisers find daily loopholes in tax laws in order to ensure their customers pay the least possible taxes. It looks like a tax advisor and the country there is constant competition: consultants caught in a state of failure, and the state realizes this, and to correct its failure to advisers again went to work searching for new tax holes.

will-the-tax-avoidance-scandal-hurt-bank-of-america-corpThus, for example, tax consultants may propose their wealthy clients avoiding tax and the taxation of their income, a lower marginal rate, so that part of its assets (securities, real estate or shares in a company) has been transferred to their children. Both then fall under a lower marginal tax rate and pay less tax. In addition to such accelerated inheritance of property taxes are forcing individuals to change and other forms of family life. For example, in some countries, favorable divorce, because then all the income of her husband can be called alimony and it’s not taxed. Or, in the US as interest on municipal, municipal bonds are exempt from paying income tax. Find out more from denver Criminal attorney.

Tax evasion (tax evasion) is in turn paying legally established tax. If you, for example, must pay tax on the sale of mushrooms, and someone for any reason sells less amount of mushrooms, it is considered to be legally avoid tax liability. But if the country reported lower sales of mushrooms from real ones, then it is illegal to avoid or evade tax.