Tax Avoidance

Tax avoidance is the legal utilization of the tax regime to one's own advantage, in order to reduce the amount of tax that is payable by means that are within the law. Tax avoiders attempt to prepare their income and wealth statement either to attract a lower rate of taxes and/or to narrow the tax base which is to be used for assessing leviable taxes. Tax avoiders resort to loophole in the law that allows them to lessen the amount of taxes leviable on them and hence, they cannot be charged within the framework of law for evading taxes due to the public exchequer.
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Noun
1. the minimization of tax liability by lawful methods
(hypernym) minimization, minimisation

Minimizing tax burden through legal means such as tax-free municipal bonds, tax shelters, IRA accounts, and trusts. Compare with tax evasion.

To avoid taxes by arranging one's affairs so as not to incur tax. - (read more on Tax Avoidance)