Plain meaning
Arrangements that reduce tax within or around the legal rules, sometimes subject to anti-avoidance limits.
Also called
tax planning arrangement
avoidance transaction
Key points
- Arrangements that reduce tax within or around the legal rules, sometimes subject to anti-avoidance limits.
- The exact result depends on the statute, program terms, administrative guidance, or court decision that applies.
- The concept can affect compliance obligations, eligibility, payment timing, or the economic effect of a policy measure.
- Avoidance rules are central to audits, GAAR cases, disclosure rules, and budget integrity measures.
Why it comes up
Avoidance rules are central to audits, GAAR cases, disclosure rules, and budget integrity measures. It can affect how tax rules are enacted, interpreted, enforced, challenged, or reported to the public.