Tax Avoidance vs. Tax Evasion - Supreme Court Justice Brandeis on the difference

“I live in Alexandria, Virginia. Near the Supreme Court chambers is a toll bridge across the Potomac. When in a rush, I pay the dollar toll and get home early.

However, I usually drive outside the downtown section of the city and cross the Potomac on a free bridge. This bridge was placed outside the downtown Washington, DC area to serve a useful social service, getting drivers to drive the extra mile and help alleviate congestion during the rush hour. If I went over the toll bridge and through the barrier without paying the toll, I would be committing tax evasion ...

If, however, I drive the extra mile and drive outside the city of Washington to the free bridge, I am using a legitimate, logical and suitable method of tax avoidance, and am performing a useful social service by doing so.

For my tax evasion, I should be punished. For my tax avoidance, I should be commended. The tragedy of life today is that so few people know that the free bridge even exists.”

― Louis D. Brandeis (Click Here) U.S. Supreme Court Justice, 1916-1939


Notice the emphasis on how to respond correctly to the jurisdiction question: Is it the jurisdiction of the toll bridge … or that of the free bridge?

That is the question.

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#Law #Legal #Tax #IRS #Commercial #DeFacto #DeJure

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