In the paper “Addressing tax evasion and tax avoidance In Developing Countries,” by The International Tax Compact, defines tax avoidance as ‘’an activity that takes place within the legal context of the tax system, that is, individuals or firms take advantage of the tax code and exploit ‘loopholes’ by engaging in activities that are legal but run counter to the purpose of the tax law’’

Required:

With the above definition in mind, address the following issues:

i) Explain briefly, THREE (3) differences between tax avoidance and tax evasion. 

ii) Explain FOUR (4) examples of anti-tax avoidance activities firms and individuals are likely to engage   in. 

 

b) “For the achievement of Optimum Tax Revenue for Private-Public Goal Congruence in Governance, the Private Sector is allowed to do Tax Planning so that it may only engage in Tax Avoidance but not in Tax Evasion.”

Required: 

Explain the phrase “For the achievement of Optimum Tax Revenue for Private-Public Goal Congruence in Governance” 

Explain Tax Planning and state the four (4) factors that can be used to effect it, 

 Briefly justify any three (3) Anti-Avoidance Provisions in Ghana tax laws.