Tax efficiency

From Wikipedia, the free encyclopedia
Jump to: navigation, search
For the economic theory of tax efficiency, see Excess burden of taxation.

A financial process is said to be tax efficient if it is taxed at a lower rate than an alternative financial process that achieves the same end.[1]

Passing one's assets onto one's heirs using a Grantor Retained Annuity Trust, for example, is potentially more tax efficient than simply letting the heirs inherit the assets.

References[edit]