tax avoidance

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tax avoidance (uncountable)

  1. The legal exploitation of tax rules to minimize tax payments.
    • 1995, Robert Ernest Hall, Alvin Rabushka. The Flat Tax, page 26,
      Tax avoidance is a costly business to the US economy. Some of the country's best minds in the legal and accounting professions work around the clock searching for loopholes in the tax regulations.
    • 2008, Aaron Larson, Wills and Trusts Kit For Dummies[1], page 85:
      Many mistakes are common in creating and administering a Family Limited Partnership, and these errors can reduce or eliminate its value as a tax avoidance tool.
    • 2009, Kevin Murphy, Mark Higgins, Concepts in Federal Taxation 2010, With Taxcut Tax Preparation Software, page 32,
      Tax planning uses tax avoidance methods.

Usage notes[edit]

While tax avoidance, the minimization of tax by careful reading of tax rules, has traditionally been regarded as legal and legitimate, the issue of tax avoidance schemes came into public debate (for example in the UK and Australia) during the latter part of the 20th century. Consequently, some such schemes are considered unacceptable, and may not remove the liability to pay. In Australia, tax avoidance schemes include the bottom of the harbour schemes of the 1970s, which sought to place the liability in an entity that was unable to pay. Some writers distinguish between tax avoidance and tax minimization or mitigation; the latter being legally effective in minimizing liability.


See also[edit]