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 ?
The Stop Corporate Inversions Act would close the tax loophole that allows U.S.
Tax loophole on holiday homes FOLLOWING your article in Tuesday's DP about Holiday Homes in Anglesey: do your readers know that we the hard pressed Council Tax payers of North and West Wales are now subsidising holiday home owners on a massive scale?
CAMPAIGNERS are fighting to close a tax loophole that allows "dangerous" super-strong cider to be sold at knockdown prices.
Taxation: Both chambers of Congress have introduced bills to close a tax loophole allowing foreign insurance groups to avoid taxation on investment income by shifting reserves into low-tax or tax-free overseas jurisdictions using related-party reinsurance transactions.
A clampdown on a tax loophole used by media stars to have their salaries paid through special companies has been unveiled by the Chancellor.
Citing the findings, the National Retail Federation called on Congress to close the online tax loophole.
Scrapping the bedroom tax will be funded by closing a hedge fund tax loophole. This will mean that those with plenty of money will pay for some of the least well-off being relieved of the burden of the bedroom tax."
Unions have warned the move would make it easier for workers to be sacked and could be used as a tax loophole by companies.
However, it has been hit by a tax loophole which means it has to charge VAT after it hits a certain threshold of income.
Forget the "pasty tax", which was just an attempt to close a bizarre tax loophole. Mr Osborne's new car tax is the real mistake.
In spite of the tough talk on cracking down on tax dodging the Government is planning on opening a new tax loophole, which will make it easier for multi-nationals to avoid paying their bills around the world.
The website also advises how the current sales tax system is unable to support the 21st Century retail marketplace and will be continuously updated with information on the online sales tax loophole and resources to help level the playing field for all retailers, ICSC said.