Definitions of Tax planning vs. Tax Crimes

Tax planning or tax minimization is the normal and sensible action to take in order to arrange your business and financial affairs in such a way that you only pay the minimum amount of tax required by law. In its true and noble form it is legal at all times. Until just recently the term tax avoidance could also be used to describe this legal activity.

Tax avoidance in its old and real form is the same as legal tax minimization. In today's world the term has become somewhat tainted, and is therefore dubious, and should not be used in a legal context.

Tax fraud is the illegal act of actively falsifying documents and/or information in order to gain financially in connection with taxation. This normally lead to receivable of unlawful funds, or smaller tax payments than should otherwise have been the case. An element of deceit normally needs to be present in order for the actions to qualify as tax fraud.

Tax evasion is as a term somewhere in-between tax minimization and tax fraud. It is usually more of a passive act, in which assets and/or income intentionally are undeclared and left out from taxation. It is considered to be a crime in most, but not all, countries around the world. Switzerland is one of the countries where evasion is not a criminal offence.