Define: Abusive Tax Shelter

UK Accounting Glossary

Definition: Abusive Tax Shelter

Quick Summary of Abusive Tax Shelter

Abusive Tax Shelter is an investment scheme that claims to reduce income tax without changing the value of the user’s income or assets

What is the dictionary definition of Abusive Tax Shelter?

Dictionary Definition

In the USA, this is a financial arrangement (often involving complex transactions through a trust or partnership) that aims to reduces an entities liability to tax and is judged to serve no legitimate business purpose beyond this.

The Internal Revenue Service (IRS) frequently publishes a list of transactions that are considered abusive; any taxpayer who makes use of such an arrangement; or one that resembles it; may be charged back taxes plus interest.

In the UK, the General Anti-Abuse rules similarly aim to outlaw “artificial and abusive” tax shelters.


Full Definition of Abusive Tax Shelter


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Modern Language Association (MLA):
Abusive Tax Shelter. Payroll & Accounting Heaven Ltd. November 21, 2019
Chicago Manual of Style (CMS):
Abusive Tax Shelter. Payroll & Accounting Heaven Ltd. (accessed: November 21, 2019).
American Psychological Association (APA):
Abusive Tax Shelter. Retrieved November 21, 2019, from website:

Definition Sources

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This glossary post was last updated: 27th January 2019.