GlossaryEN1 min readUpdated: Jun 26, 2026

tax abuse

A freight forwarder faces an audit: the allegation is that invoices for non-existent transport services were used to claim improper input VAT deductions—a textbook case of tax abuse.

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://de.wikipedia.org/wiki/Steuerhinterziehung

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Logistics Concept

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Definition & Explanation

A freight forwarder faces an audit: the allegation is that invoices for non-existent transport services were used to claim improper input VAT deductions—a textbook case of tax abuse. The term refers to the unlawful or improper exploitation of tax provisions to reduce a liability below what is legally owed. Tax authorities distinguish between outright tax evasion—active concealment of income or assets—and aggressive tax planning that technically exploits loopholes while contradicting the purpose of the legislation. In cross-border trade and logistics, common risk patterns include improper VAT recovery, fictitious supply-chain transactions, false invoicing, and misuse of free zones or bonded warehouses. The boundary between legitimate tax efficiency and criminal abuse is frequently contested, but bodies such as the OECD continue to narrow the space for arrangements that lack genuine economic substance.

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tax abuse

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