tax avoidance


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Tax avoidance

Minimizing tax burden through legal means such as tax-free municipal bonds, tax shelters, IRA accounts, and trusts. Compare with tax evasion.

Tax Avoidance

The act or practice of taking steps to legally reduce one's tax liability. One may do this directly by taking advantage of an applicable tax credit or tax deduction. More often, however, the term refers to a person or company making trades or conducting other activities specifically to avoid taxes. For example, one may sell a stock at a loss to offset a gain on the sale of another stock. It is important to note that tax avoidance is different from tax evasion, which is the minimization of one's tax liability through illegal means, though it is generally acknowledged that the line between the two can be murky.

tax avoidance

The reduction of a tax liability by legal means. For example, high-income individuals avoid significant federal income taxes by purchasing and holding municipal bonds. Compare tax evasion.

tax avoidance

any efforts by taxpayers to arrange their financial affairs so as to avoid paying TAX by taking maximum advantage of taxation allowances and reliefs. In this way taxpayers can legally minimize their tax burden. Compare TAX EVASION.

tax avoidance

any efforts by taxpayers to arrange their financial affairs so as to avoid paying TAX by taking maximum advantage of taxation allowances and reliefs. In this way taxpayers can legally minimize their tax burden. Compare TAX EVASION.

tax avoidance

Perfectly legal and ethical strategies for reducing taxes to the lowest possible number. Contrast with tax evasion.

References in periodicals archive ?
Hanlon and Heitzman (2010) highlight that the tax avoidance metrics that are used for the effective tax rate, even if measured over the long run, reflect all of the transactions that have any effect on a company's tax liabilities and do not distinguish between real activities that have tax benefits, activities carried out specifically to reduce taxation, and tax benefits obtained via lobbying activities.
We recognize that the causality of the relation between corporate tax avoidance and financial constraints may operate in both directions.
For instance, stricter tax enforcement can reduce tax avoidance (Hoopes, Mescall & Pittman, 2012) and improve financial reporting quality (Hanlon, Hoopes & Shroff, 2014).
A recent HMRC survey of more than 1,000 people found that 63% believed that use of tax avoidance schemes is still widespread.
The key inquiry thus becomes whether a transaction can concurrently contain both a valid principal business purpose and a principal purpose of tax avoidance. Unfortunately, case law has not yet provided a definition for principal purpose of tax avoidance in a Sec.
It will take a Labour government to call time on this lax approach and launch an assault on tax avoidance."
Mr Miliband intervened on Wednesday in the escalating row over alleged tax avoidance activities linked to HSBC's Swiss subsidiary by naming Lord Fink - under the cloak of parliamentary privilege - as one of the UK citizens listed as having an account at the bank's Geneva branch and accusing Mr Cameron of being "a dodgy Prime Minister surrounded by dodgy donors".
Mr Miliband intervened yesterday in the escalating row over alleged tax avoidance activities linked to HSBC's Swiss subsidiary by naming Lord Fink - under the cloak of parliamentary privilege - as one of the UK citizens listed as having an account at the bank's Geneva branch and accusing Mr Cameron of being "a dodgy Prime Minister surrounded by dodgy donors".
In a report by MPs, accountancy company PricewaterhouseCoopers (PwC) has been accused of promoting tax avoidance, the BBC reported on Friday.
M2 EQUITYBITES-February 9, 2015-PwC accused of tax avoidance "on industrial scale"
HM Revenue and Customs (HMRC) has issued a list of '10 things a tax avoidance scheme promoter won't always tell you'.
YOU had no sympathy for Gary Barlow, who plans to sue the advisers who suggested he invest in a tax avoidance scheme...