Tax Efficiency


Tax Efficiency
An attempt to minimize tax liability when given many different financial decisions. There is a wide variety of tax-efficient vehicles, including tax-efficient mutual funds, irrevocable trusts and tax-exempt commercial paper.

Choosing the best tax-efficient investment can be a daunting task for those with little knowledge of the different types of products available. The best decision may be to contact a financial professional to determine if there is a way for you to make your investments more tax efficient.


Investment dictionary. . 2012.

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  • tax efficiency — tax efficient ˌtax efˈficient adjective TAX a tax efficient way of doing something makes it possible for you to pay less tax: • It would be more tax efficient to register the holding company in the U.S., rather than in Europe. • A pension is a… …   Financial and business terms

  • Tax efficiency — 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. [ [http://www.investorwords.com/4893/tax efficient.html Investor Words definition of tax efficient ]… …   Wikipedia

  • tax-efficient — ˌtax efˈficient adjective TAX a tax efficient way of doing something makes it possible for you to pay less tax: • It would be more tax efficient to register the holding company in the U.S., rather than in Europe. • A pension is a tax efficient… …   Financial and business terms

  • Tax Planning — Logical analysis of a financial situation or plan from a tax perspective, to align financial goals with tax efficiency planning. The purpose of tax planning is to discover how to accomplish all of the other elements of a financial plan in the… …   Investment dictionary

  • Tax avoidance and tax evasion — Tax avoidance is the legal utilization of the tax regime to one s own advantage, in order to reduce the amount of tax that is payable by means that are within the law. By contrast tax evasion is the general term for efforts to not pay taxes by… …   Wikipedia

  • Tax competition — exists when governments are encouraged to lower fiscal burdens to either encourage the inflow of productive resources or discourage the exodus of those resources. Often, this means a governmental strategy of attracting foreign direct investment,… …   Wikipedia

  • Tax farming — was originally a Roman practice whereby the burden of tax collection was reassigned by the Roman State to private individuals or groups. In essence, these individuals or groups paid the taxes for a certain area and for a certain period of time,… …   Wikipedia

  • Tax preparation — is the act of preparing the filing of income tax returns. Because United States income tax laws are considered to be complicated, many people and corporations seek outside assistance with taxes.Tax preparation may be done by the filer, with the… …   Wikipedia

  • Tax — Taxation An aspect of fiscal policy …   Wikipedia

  • Efficiency wages — In labor economics, the efficiency wage hypothesis argues that wages, at least in some markets, are determined by more than simply supply and demand. Specifically, it points to the incentive for managers to pay their employees more than the… …   Wikipedia


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