(plural tax shelters)
- A legal structure that reduces tax liability for a person or that person's assets.
tax shelter - Investment & Finance Definition
An investment or accounting technique that is designed to minimize the amount of tax that must be paid on income or profits. Although tax shelters typically start out as legal techniques, the Internal Revenue Service may investigate a shelter and argue that it is in fact breaking the tax laws. Thus, tax shelters often operate in a gray area and eventually may be declared illegal.
tax shelter - Legal Definition