Is changing the amount of miles you drive so that you can pay a lower tax...

Is changing the amount of miles you drive so that you can pay a lower tax on mileage-based fees Tax evasion or Tax avoidance, please explain why

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Expert Solution

First of all let us know what is mean by Tax Evasion and Tax Avoidance.

Tax Evasion : Tax Evasion is the attempt to avoid tax through illegal means like misrepresentation of facts.

Tax Avoidance : Tax Avoidance is the evade/minimise tax using the legally available means . Here the main intention of the tax payer is to avoid tax tax and any arrangement has sole purpose only to minimize tax and the transaction donot have a commercial substance .

In the given question the tax payer is trying to change the amount of miles driven that means he is falsely misrepresenting the facts inorder to avoid tax.

Hence this is a case of TAX EVASION

jeff jeffy answered 1 year ago

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