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.
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.
Famous quotes containing the words tax and/or efficiency:
“What is the difference between a taxidermist and a tax collector? The taxidermist takes only your skin.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
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