Tax avoidance
minimization of taxes paid, through legal means
Tax avoidance is a legal way to avoid or reduce the tax payed to the government or state. It contrasts with tax evasion, which is illegal dodges to avoid paying tax. A tax shelter is one type of tax avoidance. Tax havens are places which offer low tax.[1]
The World Bank's World Development Report 2019 on the future of work says governments should curb tax avoidance.[2] It remains a fact that tax avoidance is the way many companies and rich people manage to pay as little tax as possible.
References
change- ↑ Dyreng, Scott D.; Hanlon, Michelle; Maydew, Edward L. (2008). "Long‐run corporate tax avoidance". The Accounting Review. 83: 61–82. CiteSeerX 10.1.1.638.2292. doi:10.2308/accr.2008.83.1.61.
- ↑ "World Development Report 2019: The Changing Nature of Work".