What is the difference between tax shelter and tax shield?

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Posted by:
Mehboob Ali Laghari
28-July-2015

Question added by HANNA SABA , Team Leader (Administrative Support), including translation, editing, and writing , Deloitte
Date Posted: 2014/06/20

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by Azeem Ahmed , Cheif Accountant , Al Shafar Group

Tax shelters are method of dropping taxable income resulting in a decrease of the payments to tax collecting individuals. Whereas a Tax shield is the reduction in income taxes that results from taking an allowable deduction from taxable income.

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