Businesses and individuals can reduce their tax liabilities and tax burden through tax optimization. Unlike tax evasion which is the act of not reporting your income or misrepresenting your deductions, tax optimization involves making as many deduction and credit claims as you can as well as utilizing tax advantages. Therefore, tax optimization is any legal mechanism you can use in your favor to reduce the amount of tax you owe. As a taxpayer, you can choose any solutions or alternatives that are legally provided for tax optimization. This may mean you comply with whatever tax obligations and tax mechanisms set in place in your country or state by utilizing them to your advantage.