Scroll Plus topic · 109 lessons

Tax basics: allowances, capital gains and deadlines

Tax is one of the three Scroll Plus topics, because the rules change most from one country to the next. In the app, examples and allowances follow the country you pick.

The three lessons below are general versions that apply in most countries.

Lesson 10m 55s read · level 3

Tax avoidance vs evasion: legal vs criminal

Avoidance: using legal allowances and reliefs. Evasion: deliberately not declaring or hiding. One is smart, the other is criminal.

AvoidanceLegal

EvasionCriminal

Tax avoidance: using legal allowances, reliefs, and tax-advantaged accounts to reduce what you owe. Legal and sensible. Tax evasion: deliberately not declaring income, hiding assets, or filing false returns. Criminal. Penalties stack fast: tax owed, interest, large fines, and sometimes prison.

Try this Tax avoidance (legal): use allowances and tax-advantaged accounts. Evasion (criminal): hide or lie. Honest filing protects.

Quick check

What's the legal distinction between tax avoidance and tax evasion?

Lesson 20m 50s read · level 2

Tax deadlines: don't miss them

Tax-year boundary, return-filing deadline, payment deadline, instalment dates, allowance-reset date - every system has them. Miss them and penalties stack fast.

Every systemHas deadlines

LateAuto penalty

Tax deadlines vary by country, but every system has the same key dates: when the tax year starts and ends, when the return must be filed, when tax must be paid, instalment dates for the self-employed, and when annual allowances reset. Late filing penalties typically start automatically the day after the deadline and grow over time. Calendar them.

Try this Tax deadlines: every system has a return-filing date, payment date, instalment dates and allowance-reset date. Late penalties start automatically and grow. Calendar them.

Quick check

What's the typical pattern of penalties for missing an annual tax-return deadline?

Lesson 30m 50s read · level 4

Tax-loss harvesting: offset gains with crystallised losses

Investment underwater? Sell to crystallise the loss. Offset against gains same / future years. Reduces capital gains tax bill.

Carry forwardUsually permitted

WatchWash-sale rules

Tax-loss harvesting: deliberately crystallise unrealised losses by selling underwater investments. Offset against current / future capital gains. Reduces capital gains tax liability. Most jurisdictions allow losses to be carried forward against future gains. 'Wash-sale' style anti-abuse rules in many countries prevent immediate repurchase of the same security.

Try this Tax-loss harvesting: crystallise losses to offset gains; usually carry forward unused losses. Watch wash-sale style rules. Workarounds: similar fund, separate account, wait out the window.

Quick check

What's the typical 'wash-sale' style anti-abuse rule for tax-loss harvesting?