legalfavor profilja

In addition to avoiding taxes, some taxpayers use legal loopholes to artificially shift their profits abroad. Such strategies allow multinational corporations and individuals to avoid paying taxes in their home countries. In addition, these companies can hide their true identities behind shell companies, making it difficult for anyone to determine who is earning the profits and who is dictating the company's movements. Luckily, the European Parliament has taken the fight against tax evasion and avoidance seriously, recommending that the EU develop a central register of beneficial owners. Tax avoidance

The two main types of tax avoidance vs evasion are underreporting income and understating taxes. Both types of evasion are illegal and punishable by law. In addition to underreporting income, evasion involves attempting to reduce or eliminate the taxes owed through illegal means. Fortunately, there are ways to reduce your taxes without committing a crime. Listed below are some tips to avoid underreporting income and understate your taxes.