Tax avoidance

Tax avoidance is simply avoiding tax payment by exploiting the legal provisions provided to a tax payer. Since it is not illegal, tax avoidance is some sort of a legally allowable way to reduce tax burden. It is by and large not defined in taxing statutes. The purpose here is to reduce tax burden. Following are the some of the versions for tax avoidance:

Tax avoidance involves the legal exploitation of tax laws to one’s own advantage.