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> For legal residents, this is a way to avoid tax ... I'd argue it's tax _evasion_, not avoidance. Tax avoidance is the legal use of the tax law to pay as lit
by coherentpony 8y ago
> For legal residents, this is a way to avoid tax ...
I'd argue it's tax _evasion_, not avoidance. Tax avoidance is the legal use of the tax law to pay as little tax as possible. Tax evasion is circumventing of the law to relieve yourself of a tax burden that you are required to pay.
- reaperducer 8y agoYou are entirely correct. And there's also a huge economy in informal payments to people too young to work, or who work so intermittently that it's not worth reporting. Babysitters, lemonade stands, cat sitters, guys selling their own rap CDs in supermarket parking lots, garage sales, flea markets, etc...
- danans 8y agoI agree that evasion is the correct term. This is also something done by some cash only brick and mortar businesses, not just domestic services.