Tax Avoidance

Formal

The management of your affairs to minimise the tax burden within the regulations and law of a particular country. Tax avoidance is therefore completely legal as opposed to Tax evasion, which is not.

Real-world Example

A company restructures its finances to legally minimise the tax it owes, using allowances and reliefs available under the law - tax avoidance, which is legal but distinct from illegal tax evasion.