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 ?
The ruling comes after more recent evidence of potential tax avoidance by multinationals emerged, with figures last week showing Facebook paid less than PS5,000 in UK corporation tax in 2014.
Unfortunately, case law has not yet provided a definition for principal purpose of tax avoidance in a Sec.
He has just said, and I quote, 'I didn't object to his use of the word tax avoidance, because tax avoidance - everyone does it.
Barlow and two other members of Take at refused to comment on reports they face having to pay tens of millions of pounds in tax after a court ruled a partnership in which they invested was a tax avoidance scheme.
At the same time, HMRC is conducting a full review of the UK's disclosure schemes - the Disclosure of Tax Avoidance Schemes (DOTAS) and the VAT Disclosure Regime, which is due to be completed by March 31, 2014.
It followed a speech Mr Swales made in Parliament on Tuesday when he slammed tax avoidance practices and criticised the last Labour Government's Private Finance Initiative (PFI) deals.
Tax campaigners have criticised what they see as a watering down of the draft GR legislation, which was initially planned to tackle "aggressive" tax avoidance, something that later became "abusive" tax avoidance.
Chair of the Public Accounts Committee (PAC) Margaret Hodge says HMRC needs to get strict with tax avoidance.
In 2009, HM Customs reckoned that PS42bn was lost in tax avoidance and evasion.
John Rouse, partner at Wright Hassall, made his comments in light of celebrities and high net worth individuals using off-shore schemes for tax avoidance purposes.
The Guardian The Greeks have reacted angrily to comments by the head of the International Monetary Fund, Christine Lagarde in the British daily reprimanding them for tax avoidance.