Define tax loopholes

Tax loophole definition : a legal way of avoiding the payment of tax , or part of a tax bill , due to a gap in tax. Meaning, pronunciation, translations and . Used often in discussions of taxes and their avoidance, loopholes provide ways for individuals and companies to remove income or assets from . The basic definition of a tax loophole is a provision in the tax code that allows taxpayers to reduce their tax liability. Lots of benign deductions . A deliberate or accidental provision in tax law that allows an individual or corporation to be exempt from some provision. Most loopholes are deliberate and are . Technically, a tax loophole is a provision that drains money from the government. Loopholes are often thought of as the domain of corporations and the business . Someone who has a loophole named after him.

A tax loophole is tax avoidance. A loophole is an exception that allows a system to be circumvented or avoided. It usually refers to legal, taxation , or security strategies that are . The new law is designed to close most of the tax loopholes.

TAX LOOPHOLES: A PROCEDURAL PROPOSAL. We can now define tax loopholes as improper . For still others, tax loopholes were only symptoms of a worse disease-a federal. This whole approach to defining income, which includes savings as a part of income is basically consistent with the more elegant Haig-Simons definition often. Defined Benefit Pension Plans $48.

Medicare tax expenditures were . Technique allowed the tech giant to delay paying US taxes on international earnings for years, and pay a lower tax rate overseas. Tax avoidance through offshore tax loopholes is a significant reason why. An example of a loophole is a person not having to pay a certain tax because of the location of their second home.

YourDictionary definition and usage example. A grey area exists when individuals exploit tax loopholes as a means for tax avoidance. In certain countries (such as Germany) this may fall within the definition. This definition also includes businesses where the performance of services . Glossary of International Tax Terms.

Ridiculous or not, these tax breaks can lower your tax bill. A yacht deduction certainly seems like one of those tax loopholes for the rich, but . Expert practitioners of tax arbitrage have developed many means of tax avoidance, some of which border on the absurd. One is to chop cars in half such that .