Professional Documents
Culture Documents
DAY 5
SESSION III & IV
SLIDE 5.4
Tax Planning
SLIDE 5.4
Tax Planning
Tax Planning
SLIDE 5.4
Tax Planning
Tax planning should not be done with an intent to
defraud the revenue; though all transactions entered
into by an assessee taken individually could be
legally correct, yet on the whole these transactions
may be devised to defraud the revenue
Thus, planning for tax should be correct both in
form and substance
SLIDE 5.4
Colorable Devices
All such methods which are resorted to deceive
and impairing the true construction of the statute,
resulting in availing non-sacrosanct advantage of
law would be termed as colourable devices.
Those devices where statute is followed in strict
words but actually spirit behind the statute is
marred would be termed as colourable devices.
SLIDE 5.4
Tax avoidance
The line of demarcation between tax planning and tax
avoidance is very thin and blurred.
There is an element of mala fide motive involved in tax
avoidance.
Any planning of tax which though done strictly according
to legal requirement but defeats the basic intention of the
Legislature behind the statute could be termed as instance
of tax avoidance.
SLIDE 5.4
Tax avoidance
SLIDE 5.4
Tax avoidance
Tax Evasion
All
SLIDE 5.4
Tax Evasion
SLIDE 5.4
Tax Evasion
SLIDE 5.4