tax avoidance

Tax avoidance refers to the legal strategies and methods individuals or corporations use to minimize their tax liabilities. This can involve exploiting deductions, exemptions, credits, and loopholes within the tax code to reduce the amount of tax owed. While tax avoidance operates within the bounds of the law, it differs from tax evasion, which is illegal. The practice raises ongoing debates about tax fairness, government revenue, and economic policy.