How does tax avoidance differ from tax evasion?

[Good-Person]

Tax evasion is considered a big crime in many countries. Tax evasion refers to not paying taxes that you owe to the government. Having said that, there are many people who try to avoid taxes. This is called tax avoidance. So, how does it differ from tax evasion?

 

[Frank]

Tax avoidance is legal in most countries and is simply the act of funding loopholes in the tax system that enable you to avoid paying taxes. This is different from tax evasion, and well all know that it is not funny when one is caught evading paying taxes as the law will come hard on you.