Tax evasion in Lithuania

Abstract

Tax evasion could be described as an art to avoid taxes without formally violating tax laws and without reducing tax burden. When evading taxes, a chain of economic operations conforming to law is artificially created, because of which the taxpayer obtains tax advantage, and tax laws are violated indirectly, since such activities are against the meaning of taxation. Tax evasion must be distinguished from tax fraud, since these categories of tax law violation are different in their essence, they are regulated by different legislative norms, and the tax base is calculated using different methods. The article analyses the legal issues of tax evasion are examined by delimiting tax evasion from tax fraud, tax planning and tax optimisation in Lithuania. Tax evasion features and tax evasion methods are analysed. The article examines doctrines, on the basis of which the dispositions and principles of general tax evasion norms are constructed. Lithuanian judicial practice in solving tax evasion issues is reviewed.