I checked the federal corporate tax of my country, and I realize that as a person who owns a corporate business, my business would be paying 30% as corporate tax at the end of the year. While corporate taxes differs from one country to another and no matter how much you give to charity or have given back t the world, the government most times are interested in their Taxes and people would not care about anything else except raising placards that notes the rich must pay their Taxes. I was forced to ask my attorney to check out for how to get tax reliefs.
I was furious at the fact that I must work hard to pay tax which the government will not use properly due to embezzlement and other illicit activities by government officials. Although, the government needs taxpayer’s money to do a lot of things so as not to keep printing money which could lead to high rate of inflation as well as the currency losing its value. (I do not intend to evade taxes, but I hope I could find better ways to get tax reliefs).
Unlike getting away with paying taxes legally, the ability to run away from paying taxes over taxable revenues illegally is known as tax evasion. It is the ability to either trick the tax collectors and/or the government not to pay taxes.
One way a lot of companies have been able to evade tax is by creating shell companies in countries where there are tax havens since the countries are not having much economic activities. There are a lot of businesses in far British virgin island and other offshore countries where taxes are not high. With offshore companies, one thing that needs to be done is to make sure the company has a bank account. At this point, a lot of companies start to create fake invoices and award contracts that do not exist to those companies so they can be able to move the funds to those companies and those funds serves as expenses. Like when a panel set up by the senate in my country was investigating an agency known as Niger Delta Development Commission, I realized that most of the companies the agency was transferring funds to were shell companies.
We all know evading tax I wrong, although some people do it perfectly well (when they don’t get caught), but I advise that it is better to use to legal way to get tax relief in your countries. The government is not helping as they just enjoy the luxury of life using taxpayer’s money as well as they embezzle this money for themselves and their children.
No country likes people evading tax and so it will be good that you check out your country’s tax regulation so you will be safe.