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Tax avoidance

A legal, if complex, system of minimizing total taxation liabilities. Most Finance Acts, whilst attempting to cover all contingencies, inevitably leave loopholes which may legitimately be explored and used by persons wishing to minimize the amount of tax to which they could be liable. Tax avoidance should always be distinguished from tax evasion – a serious offence for which the penalties can be heavy.

Reference: The Penguin Business Dictionary, 3rd edt.