Abusive Tax Shelter
It is a financial arrangement in the United States, which involves the complex transactions through a trust or partnership. This financial arrangement will reduce the tax liability and is considered and judged to be of no legitimate business purpose.
The internal Revenue Service has published a list of transactions which are considered as abusive. Any taxpayer will be charged for back taxes plus interest if caught making use of such financial arrangement.
The United Kingdom has proposed a General Anti Abuse Rule with the purpose to outlaw the abusive tax shelter.