Tax avoidance vs. tax evasion
“Tax planning lang daw. Kailan ito nagiging krimen?”
Paying less tax is not wrong. Paying less than you know is due, with a bad-faith state of mind, through an unlawful act or omission, is. The difference is not the amount saved — it is how.
Study material, not legal advice. Written and checked by the PhilippineLaws team to the best of our knowledge; not reviewed by a lawyer. Check every provision and case against its full text before you rely on it or cite it.
Read the strip. The last panel does not answer — you do, before the rule shows up.
An accountant's office. Rina, a freelance designer, slides her receipts across the table.
ACCOUNTANT“Pwede nating piliin ang mas mababang option na allowed ng batas. Legal ‘yan.”
Choosing among lawful options the Code itself offers. Keep this in view.
Across town, Mr. Uy's company is selling a building. He signs two deeds on the same day: the company to his driver, and the driver to the real buyer.
MR. UY“Dadaan lang sa pangalan niya. Mas mababa ang tax.”
The driver never pays, never controls, never owns. Watch the substance.
A BIR examiner lays the two deeds side by side next to a bank record showing the buyer paid the company directly.
EXAMINER“Iisa lang talaga ang bentahan. Bakit dalawa ang deed?”
The paper says two sales; the money says one.
Rina and Mr. Uy, side by side, both holding lower tax bills, looking at the reader.
CAPTIONPareho silang nakatipid sa tax. Sino ang lumabag sa batas?
Vote before the rule.