06-02-2019, 02:52 PM
Also called minimization. The exploitation by the taxpayer of legally permissible alternative tax rates or methods of assessing taxable property or income, in order to avoid or reduce tax liability.
Tax avoidance is the tax savings device within the means sanctioned by law. This method should be used by the taxpayer in good faith and at arm's length (CIR vs. Estate of Benigno Toda jr., GR No. 147188, Sept. 14, 2004).
A taxpayer has legal right to decrease the amount of what would otherwise be his taxes or altogether avoid them by means which the law permits (Delpher Trades Co. vs. IAC, GR No. L-69259, January 26, 1988).
Tax avoidance is the tax savings device within the means sanctioned by law. This method should be used by the taxpayer in good faith and at arm's length (CIR vs. Estate of Benigno Toda jr., GR No. 147188, Sept. 14, 2004).
A taxpayer has legal right to decrease the amount of what would otherwise be his taxes or altogether avoid them by means which the law permits (Delpher Trades Co. vs. IAC, GR No. L-69259, January 26, 1988).