RE: Overview of the living cost in Nigeria as it relates to other countries

Absolutely! Tax avoidance is using legitimate means to pay less tax. Tax evasion is lying to the government to avoid paying taxes. One way is perfectly legal and the other will end you up in jail.

Here is an example of tax avoidance from "King of Floors" a local flooring business. This is their main webpage:

Well, at least its part of the page.

Now you will notice the dog in the image. That's Sir Scruffy. Sir Scruffy is part of their marketing and also a pet of the owner. Now when you have a business in Canada any money spent to make money is a tax deduction. If Sir Scruffy is just sitting at home the owner has to pay food, vet bills, grooming and all that stuff with no tax deduction. I mean why should your pet be a tax deduction?

However, if Sir Scruffy is part of your marketing campaign then he becomes an advertising expense. All his food, vet bills, grooming and other expenses are a tax deduction. In a high earning business those tax deductions can mean paying up to 50% less taxes

So, if Sir Scruffy has $5000 in expenses yearly...
.... If he is your mascot you'll get a $2500 tax refund
.... If he is your pet you get nothing.

Which way saves you more money?

Tax avoidance isn't about lying. It is not about not paying your fair share. It is all about keeping the best possible records, knowing every deduction the government legally allows AND using those legal deductions to pay as little as is possible.

Hope that makes things a little more clear :)