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 ?
They need to change the law so that certain forms of tax avoidance become tax evasion, and then prosecute those that are guilty of it.
The leaked Paradise Papers have exposed tax avoidance by the super-rich, with Labour's Jeremy Corbyn saying "tens of billions" is being "leeched" from public services.
Another condition that may establish a relationship between mandatory IFRS adoption and increased levels of tax avoidance is the possible increase in discretionary and non-discretionary accruals identified after IFRS adoption.
A recent HMRC survey of more than 1,000 people found that 63% believed that use of tax avoidance schemes is still widespread.
Unfortunately, case law has not yet provided a definition for principal purpose of tax avoidance in a Sec.
Mr Balls stormed: "The Tories can claim they'll raise money from tackling tax avoidance, but the amount of uncollected tax has gone up under this government.
He admitted taking tax avoidance measures "at the vanilla, bland, end of the spectrum", adding: "The expression tax avoidance is so wide that everyone does tax avoidance at some level.
Chair of the Public Accounts Committee (PAC), Margaret Hodge, said "We believe that PricewaterhouseCoopers's activities represent nothing short of the promotion of tax avoidance on an industrial scale.
YOU had no sympathy for Gary Barlow, who plans to sue the advisers who suggested he invest in a tax avoidance scheme.
Now Mr Hayward Wright, founder and managing director at Midland firm Hayward Wright Chartered Accountants, says investors need to focus carefully on their own situation in the wake of a government crackdown on aggressive tax avoidance.
Efforts to crack down on tax avoidance, evasion and money laundering have been ramped up since the G8 summit in Lough Erne, Northern Ireland, where world leaders agreed on (http://www.