Tax avoidance

Tax avoidance involves the use of legal tax planning techniques to minimize a taxpayer's tax liability. Examples of tax avoidance are:

Tax avoidance schemes can be reduced by adopted a cleaner tax code that contains fewer provisions allowing taxpayers to reduce their tax liabilities.

The key distinction between tax avoidance and tax evasion is that tax avoidance employs legal means to minimize one's tax liability, while tax evasion uses illegal methods.