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Tax planning involves strategically utilizing legal methods to minimize tax obligations and potentially defer payment. This includes taking advantage of tax relief and exemptions to reduce the amount of tax owed on certain activities. However, it is important to note that tax avoidance schemes, despite their polite terminology, are often designed to artificially lower tax liabilities and may be considered unethical or illegal. It is crucial for individuals and businesses to understand the difference between legitimate tax planning and illegal tax avoidance strategies.