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From course:

Tax Avoidance and Shell Companies

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Question:

Legal vagueness

Author: David Dimonu



Answer:

Tax results depend on definitions of legal terms which are usually vague. For example, vagueness of the distinction between "business expenses" and "personal expenses" is of much concern for taxpayers and tax authorities. More generally, any term of tax law has a vague penumbra, and is a potential source of tax avoidance.


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