Tax planning is an attempt to minimize the tax obligation through the scheme out which is indeed arranged in the Tax legislation Law and the characteristic is not to cause or make a dispute between taxpayer and tax authority. Beside it, in the other words, it is also often used to avoid the tax. The kinds of tax planning which are often used to avoid the tax are aggressive tax planning and defensive tax planning. The aggressive tax planning is a kind of tax planning which is used to do the unacceptable tax avoidance.
Meanwhile, the defensive tax planning is a kind of tax planning which is usually used by taxpayer to do the acceptable tax avoidance. In many countries, there have been many regulations which are used to avoid the aggressive tax planning that is doing by the taxpayers. It is caused that tax planning which is often done or used by the taxpayers is not a defensive tax planning anymore. But, the planning is already more offensive than before. The planning is by making an apparent transaction which basically does not have any business purposes. Besides that, that also makes a business entity in the countries that are considered as a tax haven country.
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