Difference between tax planning/mitigation and ‘unacceptable’ tax avoidance

Of course we all learn in Tax 101 that avoidance is legal and evasion is illegal.

Generally we also learn that there is a difference between tax planning/mitigation and ‘unacceptable’ tax avoidance. This line might be blurrier and causes particular problems for tax muggles like the press and politicians.

In addition that line might and perhaps ought to have shifted over time.

But rather than avoidance I think the more ‘grown up’ and technical term to use is ‘tax advantage’. It perhaps helps us draw a line in the sand as to what might be ‘acceptable’ – in other words the line might be crossed when the securing of that ‘tax advantage’ is one of the principal purposes for entering into a particular transaction. The first part is relatively objective whereas the second part is subjective.

Ultimately this principle...