tax shelter


tax shelter
Legal methods taxpayers can use to reduce tax liabilities . An example is the use of depreciation of assets. Bloomberg Financial Dictionary

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tax shelter ˈtax ˌshelter noun [countable] TAX ACCOUNTING
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

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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.

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The profession has moved into the aggressive selling of tax shelters.

tax-sheltered adjective
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Make full use of any tax-sheltered retirement accounts offered by your company.


Financial and business terms. 2012.