Tax Shelter (Noun)
Meaning
A way of organizing business to reduce the taxes it must pay on current earnings.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company set up a tax shelter in the Cayman Islands to minimize its tax liability on foreign earnings.
- By using a tax shelter, the business was able to reduce its taxable income and save thousands of dollars in taxes.
- The wealthy investor created a tax shelter through a charitable trust to reduce her tax burden on investment income.
- The company's accountant helped them establish a tax shelter by setting up a subsidiary in a low-tax jurisdiction.
- The government cracked down on tax shelters that allowed corporations to avoid paying their fair share of taxes.