Tax avoidance is a legal activity that forms the basis of the basic tax planning strategies.

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Tax avoidance refers to the use of legal methods or loopholes to minimize taxes owed. It is distinct from tax evasion, which involves illegal means to avoid paying taxes. Basic tax planning techniques often involve taking advantage of deductions, exemptions, and other provisions in tax codes to reduce a taxpayer's overall tax burden.

Tax Avoidance Is a Legal Activity That Forms the Basis