KPMG Spark Blog
In the world of finances, tax evasion and tax avoidance are two terms that often get confused and yet have completely different meanings.
Simply put, the term tax evasion means not paying the taxes that you owe. Penalties for this type of infraction can range anywhere from fines to jail time depending on intent. Intentionally foregoing the payment of your taxes will most likely result in hefty punishment.
Don’t believe us? Go read about actor Wesley Snipes' recent 3 year stint in prison after opting out of paying his taxes.
Tax avoidance on the other hand, is when you arrange your income in a manner that legally allows you to pay the lowest amount of taxes. And yes, this is legal. In fact, there’s an entire industry built around this concept—it’s called tax consultancy—something we love helping clients with here at Bookly.
Speaking on the constitutionality of the matter, Judge Learned Hand said:
Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one’s taxes. Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands.
In most cases, tax avoidance is more applicable to higher income earners. There are less ways for low income individuals to avoid payment of taxes. This fact has been at the helm of much political debate—something we’ll leave to the pundits.
The appeal of doing your own bookkeeping is perhaps obvious: not having to pay someone else to do it for you. But the important thing to consider when you are thinking about doing your own bookkeeping or outsourcing it is what you are losing from taking that time from your business.
Stay on top of what you should know about attracting and retaining a millennial workforce, and KPMG Spark, a small business CPA firm, will help you stay on top of your online accounting and bookkeeping. This blog's author is a millennial and the content therein represents the views of the author.
In any kind of economic downturn, small businesses are often hit the hardest. It’s now more important than ever to be creative and find ways to make your customers happy.
As an online bookkeeping company, KPMG Spark has experience to help you understand your position in the business lifecycle of a startup that just might help you stay a bit ahead of the game.
Use these tips to help manage your small business payroll and remember, KPMG Spark facilitates payroll and and offers invoicing services in addition to online accounting services.
KPMG Spark's online accounting service provides personal customer service to every client. Learn tips on how to make your customer service into a tool for your startup.
KPMG Spark is so proud to be able to work with many amazing businesses and brands. Discover the secret to success in business through our client, Otter Learning.
What are industry associations and why are they relevant to you?
Today, KPMG Spark launched a website that shows how CPA firms and accounting practices can gain a competitive advantage by using Spark's online accounting platform. Featuring a savings calculator, demo video and additional information about Spark's technology and service platform, the site demonstrates how KPMG Spark helps CPA firms serve their clients more profitably.
Join over 50k people who receive our monthly digest!