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What is the difference between Tax Planning and Tax Avoidance

OECD - Tax planning is defined as “Arrangement of a person's business and /or private affairs in order to minimize tax liability.”

For “Avoidance” it is “…is generally used to describe the arrangement of a taxpayer's affairs that is intended to reduce his tax liability and that although the arrangement could be strictly legal it is usually in contradiction with the intent of the law it purports to follow. Cf. evasion”

Singapore General Anti Avoidance Provision is prescribed in Section 33 of the Income Tax Act

Section 33 – It empowers the Comptroller of Income Tax to disregard or make adjustments to arrangements which are carried with Tax Avoidance as one of its main purpose and not for bona fide commercial reasons.
– It provides a statutory exception that such arrangements will stay if the arrangements are “carried out for bona fide commercial reasons and had not as one of its main purposes the avoidance or reduction of tax”.

Hence, the key test between Tax Planning and Tax Avoidance –
“Is the arrangement carry out for bona fide commercial reasons? “