Abusive Tax Shelter

Business, Legal & 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.

Cite Term

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Modern Language Association (MLA):
Abusive Tax Shelter. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. October 25, 2021 https://payrollheaven.com/define/abusive-tax-shelter/.
Chicago Manual of Style (CMS):
Abusive Tax Shelter. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/abusive-tax-shelter/ (accessed: October 25, 2021).
American Psychological Association (APA):
Abusive Tax Shelter. PayrollHeaven.com. Retrieved October 25, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/abusive-tax-shelter/

Definition Sources

Definitions for Abusive Tax Shelter are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th August, 2019 | 1 Views.