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 summit is also discussing the need to close tax loopholes for internet giants like Facebook and Google, BBC added.
And it wants to close inheritance tax loopholes, to raise PS200million a year.
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.
I'll support a Government that will: Invest an extra PS500 million in the |Welsh NHS over 2 years Reverse the Tory tax cut for millionaires |and end tax loopholes for the super-rich Reintroduce a 10p starting tax rate - a |tax cut for 24 million people Enforce the minimum wage, raise it to PS8 an hour by 2020 and ban unfair zero hours contracts End rip-off energy prices.
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. On the eve of his party's conference in Brighton, Mr Miliband will say the "most important issue facing families in Britain" is "the cost of living crisis".
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.