 tax noncompliance is a range of activities that are unfavorable to a state's tax system. this may include tax avoidance, which is tax reduction by legal means, and tax evasion which is the criminal non-payment of tax liabilities. the use of the term 'noncompliance' to refer to tax avoidance, however, is not universal or standard, and similar terms are also used differently by different authors.dyreng sd, hanlon m, maydew el. (2008). long-run corporate tax avoidance. the accounting review. for example, in the united states the use of the term 'noncompliance' often refers only to illegal misreporting.for example, see: gao. (2012). sources of noncompliance and strategies to reduce it. gao-12-651t. laws known as a general anti-avoidance rule (gaar) statutes which prohibit "tax aggressive" avoidance have been passed in several developed countries including the united states (since 2010),prebble r, prebble j. (2010). does the use of general anti-avoidance rules to combat tax avoidance breach principles of the rule of law?. saint louis university law journal. canada, australia, new zealand, south africa, norway and hong kong.ukâs general anti-avoidance rule process on schedule. t magazine. in addition, judicial doctrines have accomplished the similar purpose, notably in the united states through the "business purpose" and "economic substance" doctrines established in gregory v. helvering. though the specifics may vary according to jurisdiction, these rules invalidate tax avoidance which is technically legal but not for a business purpose or in violation of the spirit of the tax code.for example, a canadian organization describes canada's law, first passed in 1988 in section 245 of the canada's federal income tax act (described here ), as invalidating the tax consequences of a tax avoidance transaction if "not conducted for any primary purpose other than to obtain a tax benefit". related terms for tax avoidance include tax plann
Tax_avoidance