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 ?
2 Jimmy Carr calling for all tax loopholes to be closed.
Senator Debbie Stabenow (D-MI) released a statement following the Senates vote on the Republican tax bill conference report: We need tax reform that puts more money in the pockets of the middle class, closes tax loopholes that send jobs overseas and supports small businesses and farms across Michiganunfortunately, this bill does none on these things.
Why doesn't this "strong and stable" Government close all tax loopholes and end the two-way tax system - pay as you earn and pay as you like?
He said during the campaign his canny use of tax loopholes make him smart.
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.
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.
Senior church leaders and representatives of West Yorkshire Ecumenical Council (WYEC) will write the letters, addressing issues of tax evasion and tax loopholes.