Tax Avoidance

Tax avoidance refers to legal strategies that individuals or businesses use to minimize their tax liabilities. This often involves exploiting loopholes in tax laws, using deductions, credits, or other provisions to reduce taxable income. Unlike tax evasion, which is illegal and involves failing to pay taxes owed, tax avoidance is permitted by law. While it can be a sound financial strategy, it may raise ethical questions about fairness and the responsibility of contributing to public services. Overall, tax avoidance is about optimizing one’s tax situation within the framework of existing regulations.