- tax shelter
- Legal methods taxpayers can use to reduce tax liabilities . An example is the use of depreciation of assets. Bloomberg Financial Dictionary
* * *a plan or arrangement that allows you to legally avoid paying tax:
• Many investors used annuities as a tax shelter rather than as a retirement savings program.— tax-sheltered adjective :
• taxpayers with significant tax-sheltered income
* * *tax shelter UK US noun [C] TAX, FINANCE► a way of investing or spending money that allows a person or a company to avoid tax or to pay less tax than they would normally: »
Some high-earners managed to avoid income tax by moving their income into various tax shelters.»
The profession has moved into the aggressive selling of tax shelters.tax-sheltered adjective► »
Make full use of any tax-sheltered retirement accounts offered by your company.
Financial and business terms. 2012.