Tax Loophole

Tax Loophole

A deliberate or accidental provision in tax law that allows an individual or corporation to be exempt from some provision. Most loopholes are deliberate and are created to ensure that the law is not draconian, to please a lobbyist, or for some other reason. For example, a country may pass a law requiring most companies to pay taxes on their net assets each year. However, it may contain a loophole allowing the exemption of companies that would find this tax too difficult or expensive. Occasionally, the government may close a loophole, which means that it takes away the exemption.
References in periodicals archive ?
However, lawmakers should be certain to retain a reform that would close a tax loophole that cuts deeply into the revenues of cities and towns across the state.
THE Treasury look set to order a clampdown on a tax loophole after ASDA sparked off an internet CD and DVD price war.
Business leaders in Birmingham have called on Gordon Brown not to close a tax loophole that has saved small businesses pounds 1 billion a year in tax.
This council tax loophole should be closed immediately.
According to Pryor, the court's ruling that these additional amounts were not subject to the timing restrictions of Section 404, and therefore immediately deductible, "if allowed to stand, will result in an unintended indefensible and unmanageable tax loophole.
In December, the firm announced it had signed departing Senators Russell Long, premier tax loophole artist, and Paul Laxalt, close friend of the Reagans.
PRINCE Andrew sparked outrage last night by backing a tax loophole that will see his "mega-rich pals" pocket millions.
2) Closing a tax loophole that is increasingly used by large national companies to lower their state income taxes or avoid paying them altogether.
The programmes have been using a tax loophole to make millions of pounds, it's claimed.
BOSTON - A tax commission charged with streamlining the state's corporate tax system yesterday recommended immediate closing of a $170 million corporate tax loophole that allows corporations to file under a different status for federal tax purposes than the one they use for state taxes.
Arnold Schwarzenegger in 2006, criticized the governor's budget plan for cutting services to some of the most vulnerable segments of society without ending a single tax loophole.
All of the Companies That Were Once Members of the Coalition Opposed to Closing the Out-of-State Corporate Tax Loophole Have Officially Informed the Yes on Prop 39 Campaign That They Will Not Be Funding Opposition