Tax Evasion vs. Tax Avoidance: What's the Difference?

Difference between tax evasion and tax avoidance is another common misconception and confusion people have, especially when they're just starting to work with us.

Simply put - tax evasion is an illegal activity and it can easily get you in a lot of trouble. However, in many situations tax evasion is tolerated from a moral point of view, e.g. receiving cash tips or giving private lessons to someone.

On the other hand, tax avoidance is totally legal and involves tax reduction strategies, mostly for high net worth individuals, who wish to keep more of their own money, improve their lifestyle and enjoy numerous benefits.

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ABOUT NOMAD CAPITALIST

Andrew Henderson is the world's most sought-after consultant on legal offshore tax reduction, investment immigration, and global citizenship. He works exclusively with six- and seven-figure entrepreneurs and investors who want to "go where they're treated best".

Andrew has spent the last 11 years studying and personally implementing the Nomad Capitalist lifestyle, and has started offshore companies, opened offshore bank accounts, obtained multiple second passports, and purchased real estate in a total of 20 countries.

He has also spent years creating a behavior-based system that helps people get the results they want faster and with less resistance. Andrew believes that everyone can use offshore strategies to keep more of their own money, live a life of freedom, and grow their wealth faster.

DISCLAIMER: The information in this video should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Nomad Capitalist can and does not provide advice unless/until engaged by you.

[nomadcapitalist]

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[DesGardius-megf]

"I'm crazy enough to take on Batman, but the IRS!? thank you!"

—The Joker

[nomadkickbox]

Tax evasion is crossing a toll bridge without paying the officer in toll booth and Tax avoidance is crossing a free bridge to the same city.

[dwt]

I always assumed the difference was 3-5 years...

[rebeccak]

Private Individual: ain’t it great - my son’s got a part time gig. $6 an hour for cleaning dishes. It ain’t much, but it helps us pay the bil-
Government Millionaire: *I AM ENTITLED TO THAT PROFIT*

[consciouscrypto]

Great video. This is such an important point. I've made so many changes in my life to basically do what the government is trying to get me to do, that therefore give me tax savings. People always seem to think it's wrong, when it is literally giving the government what they're asking for! But I look forward to being able to get out of this crazy US system entirely. The thing to be concerned about is what's going to happen with the tax rates in wherever you move to, since for the US it apparently requires giving up citizenship here to avoid taxation here. Don't want to hop from the frying pan into the fire with a few year delay in between.

[jessicah]

Income, Property, Sales Tax... All for an ineffective gov system that pats themselves on the back for burdening more and more citizens🙄

[Bennevisie]

tl;dr;

Tax avoidance: Legal and morally defensible
Tax evasion: Illegal and morally defensible

Taxation is theft.

[ColinTalksCrypto]

Great points!! Deciding where to live is the free market of countries at work. Thank god there are choices!

[MusMoroglu]

Thanks Andrew for your video. Your channel has been a great educational piece, although I am surprised to see no counter arguments in the comments.

I think the idea of comparing avoiding/evading ‘tax’ between the upper and lower class to be a poor argument, (and I personally don’t believe the action of Tax Avoidance for millionaires to be moral, but that’s an opinion).

To crystallise my main argument - fair enough, you want to keep more of your money that you have earned. But the issue is the Wealth Inequality is the impact it causes on the generations. I am ‘lucky’ to have seen upwards social mobility, and although I am likely never to be able to afford a house, at least I can eat and can pay bills (for now!).
Wealth should not be a lottery determined by your (grand)parents income. I think Tax on Wealth is a leveller that I appreciate is not an opinion shared by many on this platform.

I appreciate I may have a level of bias, but I will continue to learn by watching your channel, and counter-arguments (I am a scientist after all, so I’m at least trying to gather all the information I can!).
I hope if there are any comments to my post, they can spare a kindness to explain rather than to offend. Happy to be directed to other sources.

[thedeekabides]

It isn't wrong to not pay taxes, it's just illegal for poor people.

[ThomasStYeng]

Feisty episode. Well done. Sometimes the truth stings. Go where you’re treated BEST

[devonfornal]

Quick Question Though How do you get out of a building surrounded by the feds

[notsure]

The problem what people have with TAX AVOIDING is that people "pretend" moving to a lower tax country,
And then still live in the country where they don't pay tax....

[RobEJC]

Love my accountant - tax issues are not morality; they're about "what does the law allow."

[austinmcmahon]

Jordan Belfort[voice over]: There were other things about him too, like his phosphorescent white teeth. The fact that he wore horn rims with clear lenses just to look more Waspy. Then there were these rumors.

[ricmuch]

Rip tax evasion the cave spider, may you rest in peace.

[Labdominals]

Gods work, brother. Lower your taxes and donate to your community is my motto.

[nathancrosswhite]

To own a shell company do you already need to own a company and have it trade marked? Or can i just open the shell with just applying for an off shore bank?

[abeeiland]

Thank you for bringing clarity to the subtle differences of tax evasion and tax avoidance.