Tax Shelter
/ˈtæks ˌʃɛltər/
Definitions
- (n.) An investment or arrangement designed primarily to reduce or defer tax liability, often scrutinized for legitimacy by tax authorities.
The IRS investigated the company’s tax shelter for potential abusive tax avoidance.
- (n.) A legal structure or scheme that shelters income or gains from taxation through allowable deductions or credits.
The taxpayer invested in a tax shelter that provided significant deductions for energy-efficient upgrades.
Forms
- tax shelters
Related terms
Commentary
Legal drafting should clearly distinguish legitimate tax shelters from abusive schemes to avoid regulatory penalties.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.