The definition of tax planning - part 2

Tax Avoidance (Tax evasion)

Tax avoidance is the work done TP (taxpayer) to reduce, prevent, alleviate, minimize the amount of taxes paid in ways made possible by the tax bill.

Tax Avoidance is an attempt to avoid the efficiency of the tax burden through taxation of the transaction which is not an object of such tax, the company suffered losses still need to change employee benefits in the form of a gift of money because natura natura Income tax is not the object of article 21. Thus occurred the tax savings of between 5% -35%.

Tax avoidance schemes are usually defined as a transaction which is intended to minimize the tax burden by exploiting the weaknesses (loophole) provision of taxation of a country.

Tax avoidance (tax evasion) can be said to be legal (not illegal) because using the slit of a legislation (loope holes) in terms of tax obligations. In contrast to tax evasion (smuggling of tax) is done in violation of tax legislation so that dikatan illegal. Based on the observation of the implementation of tax planning can be done by utilizing the facilities provided by the government include:

Determine line of business (exporters)

° to certain export Entrepreneurs (PET)

Determine the location of the business (Bonded Zone)

· Penanggguhan VAT on the purchase of both local and imported machine
· Exemption of Import Duty, Import VAT and Income Tax Article 22.

The main purpose of tax planning is to minimize the tax burden of the imposition of sanctions in the form of penalties and interest and other charges if the investigation conducted by the Directorate General of Tax, because it does not violate tax laws.

Tax Evasion (tax fraud)

Tax evasion (tax evasion) is a crime because it is an engineering subjects (actors) and objects (transactions) to obtain tax savings tax unlawfully (unlawfully, and tax evasion is arguably inherent virus (inherent) in any tax system applicable in almost every jurisdiction. Likewise terdekteksi tax evasion has inherent risks as well, and invites criminal sanctions and fines. There is a possibility that in order to minimize the risk of undetected tax fraud perpetrators usually will try to hide or obscure the origins of "proceeds of crime" (proceeds of crime) by committing a subsequent crime of money laundering, so that they can maximize the expected utility of income tax evasion. That''s why crime in the areas of taxation including one of the predicate offense (predicate crime) of money laundering (AML ).

Tax evasion is defined as a scheme to reduce the tax payable by way of taxation violates the provisions of (illegal) such as by not reporting some of the sale or increase the cost of a fictitious manner.

Embezzlement Tax Effects

Tax fraud in the financial sector losses are heading for state coffers as it can cause an imbalance between the budget and other consequences associated with it, such as the tax rate increase, the state of inflation, etc..