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:
“Change of fashion is the tax levied by the industry of the poor on the vanity of the rich.”
—Sébastien-Roch Nicolas De Chamfort (1741–1794)
“Nothing comes to pass in nature, which can be set down to a flaw therein; for nature is always the same and everywhere one and the same in her efficiency and power of action; that is, nature’s laws and ordinances whereby all things come to pass and change from one form to another, are everywhere and always; so that there should be one and the same method of understanding the nature of all things whatsoever, namely, through nature’s universal laws and rules.”
—Baruch (Benedict)