Re:Switzerland is the world’s most competitive economy
by jomamaxx on Wednesday September 28, 2016 @10:14PM
(#12602884)
The 'difference' is one is illegal.
If you have $1M in a Swiss bank account earning capital gains, and don't declare it to the IRS - that's 'tax evasion'.
If you have a company in Switzerland generating revenue, and decide not to bring back your profits to America to get hit with another tax, and just let it sit in Switzlerland - that's a 'tax avoidance' strategy.
'Tax evasion' = illegal.
'Tax avoidance' = doing everything you can within the boundaries of the law to not pay taxes. There are some wierd loopholes due to the way taxation works across borders.
If you have $1M in a Swiss bank account earning capital gains, and don't declare it to the IRS - that's 'tax evasion'.
If you have a company in Switzerland generating revenue, and decide not to bring back your profits to America to get hit with another tax, and just let it sit in Switzlerland - that's a 'tax avoidance' strategy.
'Tax evasion' = illegal.
'Tax avoidance' = doing everything you can within the boundaries of the law to not pay taxes. There are some wierd loopholes due to the way taxation works across borders.