tax avoidance

Definition

The legal exploitation of tax rules to minimize tax payments.

Example Sentences

• "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."
• "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."
• "Tax planning uses tax avoidance methods."