Tax Loophole

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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 guilt lies with a series of Westminster governments who have allowed the explosion in tax loopholes to go unchecked.
To prevent a return of the fiscal crisis, Katseli said markets need to be regulated properly, including that tax loopholes should be made proper
To avoid a repeat of the financial crisis, Katseli said markets need to be regulated effectively, adding that tax loopholes should be corrected.
All legal of course - just like those tax loopholes Ed's so angry about.
Tax loopholes allow corporations to dodge taxes by hiding profits overseas in places like the Cayman Islands.
corporate tax rate, even if that assumes giving up tax loopholes, according to a new study released today by the Tax & Accounting business of Thomson Reuters.
Shutting tax loopholes around Europe and the wider world should be a priority for every political party, particularly Labour.
He can easily afford the PS17million that will cost - because of his windfall this year from closing online gambling tax loopholes.
Labour insists the PS470m set to be saved by the welfare reform could be met by closing "shady" tax loopholes.
According to German newspaper, Daily Sueddeutsche Zeitung, German authorities have obtained bank documents that were dated between 2007 and 2010 where Barclays had mapped out tax loopholes it had found.
Prime Minister David Cameron will lead efforts at next month's G8 summit of world leaders to find ways of preventing multinational firms from exploiting tax loopholes.
But at the end he says if Labour formed the next government, they should plug tax loopholes, clamp down on 'exploitive privatised industries,' also supply a dignified living wage, but he wouldn't hold his breath on them doing it.