Quote:
Originally Posted by CorsiHockeyLeague
What? No it's not. Literally every time you deduct anything from your income you're engaging in tax avoidance. An RRSP contribution is tax avoidance. Tax evasion is illegal, tax avoidance is perfectly legal and literally everyone does it because the system is designed for them to do so.
"Abusive tax avoidance" - the kind targeted by GAAR - is illegal, sort of, but it's not a crime. They can't even charge you penalties or interest for it if you're found to have committed it, much less try to prosecute you. You just have to pay the tax you avoided.
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Sorry yes - and thanks - I meant evasion, not avoidance. But the post I responded to was suggesting it is all semantics: evasion, avoidance, minimization.
And of course, they are not.
Making an RSP contribution is not avoidance, by the way, it is a deferral. Most tax strategies are deferrals.
Making a TFSA contribution is avoidance (legally).
Engaging in aggressive tax strategies to try and reduce or eliminate taxes is usually avoidance, which as you say, isn't 'illegal', but can result in fines, if CRA deems warranted.
Engaging in practices that are actually illegal, is evasion.
So, - as was the point of my prior post - the differences are real, and it is not a simple matter of semantics.