UK Accounting Glossary
Abusive Tax Shelter is an investment scheme that claims to reduce income tax without changing the value of the user’s income or assets
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.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Abusive Tax Shelter are sourced/syndicated and enhanced from:
This glossary post was last updated: 27th January 2019.