calculate all the applicable fiscal taxes for 1 used 2018 mantra saloon car with a petrol driven engine capacity of 1500 litres (1500cc)

Answer-

??TAX AVOIDANCE-

1. Tax avoidance is a process by using of legal methods to minimize the amount of income tax of taxpayer.

2. Tax avoidance can be used by claiming tax deductions, credits and tax advantages.

3. Tax avoidance is totally legal because it use legally the loop holes of income tax to avoid tax.

??Example of tax avoidance-

1. If taxpayer is putting his/her money in Individual Savings Account (ISA). From this taxpayer can avoid paying income tax on the interest earned by your cash savings.

2. If taxpayer puts assets on his wife's name so he can pay less tax on its income.

??TAX EVASION -

1. Tax evasion is an illegal activity which includes avoiding or evading the true tax liability.

2. Tax evading is subjected to penalties and criminal charges.

3. Tax evasion takes place when tax payer misrepresented his income statements and take false deductions.

??Example of tax evasion-

1. Submitting fake documents and claiming the credits and deductions.

2. Not giving tax on bribery money.

3. Earn money from smuggling and do not showing it for evading the tax.