Law Dictionary Definitions

tax incentive.A governmental enticement, through a tax benefit, to engage in a particular activity, such as the contribution of money or property to a qualified charity. [Blacks Law 8th]

tax home.A taxpayer’s principal business location, post, or station. • Travel expenses are tax-deductible only if the taxpayer is traveling away from home. [Cases: Internal Revenue 3343.] [Blacks Law 8th]

tax haven.A jurisdiction, esp. a country, that imposes little or no tax on the profits from transactions carried on there or on persons resident there. “Among the reasons for this complexity [in international taxation] is the elusive nature of tax havens. A tax haven is not always immediately obvious. What makes a particular environment a…

tax-free exchange.A transfer of property for which the tax law specifically defers (or possibly exempts) income-tax consequences. • For example, a transfer of property to a controlled corporation under IRC (26 USCA) § 351(a) and a like-kind exchange under IRC (26 USCA) § 1031(a). [Cases: Internal Revenue 3184; Taxation 996. C.J.S. Internal Revenue §§ 120–121,…

tax-free,adj. See TAX-EXEMPT. [Blacks Law 8th]

tax fraud.See TAX EVASION. [Blacks Law 8th]

tax foreclosure.See FORECLOSURE. [Blacks Law 8th]

tax ferret.A private person engaged in the business of searching for taxable property that has somehow not been taxed. [Cases: Internal Revenue 4442. C.J.S. Internal Revenue § 610.] [Blacks Law 8th]

tax-exempt bond.See BOND(3). [Blacks Law 8th]

tax evasion.The willful attempt to defeat or circumvent the tax law in order to illegally reduce one’s tax liability. • Tax evasion is punishable by both civil and criminal penalties. — Also termed tax fraud. Cf. TAX AVOIDANCE. [Cases: Internal Revenue 5263; Taxation 1103. C.J.S. Internal Revenue § 847; Taxation § 1782.] [Blacks Law 8th]