Test Tax evasion

QUESTION 1: WHAT IS TAX EVASION?

Tax evasion is committed when a company or business owner attempts to hide part of the income from its services in order to pay less tax
We must be clear that this activity is illegal and has legal consequences that have repercussions for our company

When we hide our assets, it is also a valid example of tax evasion, since we do not legally declare the existence of our properties
The most common way would be to manipulate our wage earnings, showing them as lower than the real ones
Another way is to deliberately increase the figures of our personal expenses, and assume them as if they were business expenses
Taxes are also evaded when we benefit from subsidies or donations without complying with the legal requirements that duly justify their existence

All our actions in business have long- or short-term consequences
The repercussions of tax fraud are largely borne by the state, mainly affecting public services and the resources available to the state
It generates situations of confrontation between companies that pay their taxes and others that evade them unscrupulously
The main consequence of tax evasion affects us as a business and our image as entrepreneurs, it is a fatal cause of the deterioration of our company's prestige

Tax evasion is sometimes confused with late payments due to organizational problems whose solution has been beyond our business scope
When we find ourselves in this situation it is necessary to seek specialized help from registered agents, lawyers or certified public accountants
A first step is to know clearly what we have to pay, such as bills, additional interest or penalties
This may not help in deciding whether we need a term agreement to pay

Planning fiscally in order to pay a lower rate of taxes in a legal way
Seeking support in deductions and credits
It can be beneficial for our business to receive dividends as they demand lower tax rates than our salary
Donating to NGOs or non-profit foundations, in this case, will not only be a symbol of our generosity, but will also help us to legally reduce our taxes

If we pay our tax dues on time, we avoid fines or higher surcharges
The goal of keeping our taxes in order is to avoid further complications
It allows us to obtain better credit facilities from banks if necessary for future projects
The most beneficial thing we can obtain is peace of mind for our company