Reducing tax bills by using legal means is called tax avoidance.

A state benefit paid to employees through the tax system, which has the effect of increasing net income.

Breaking the law to reduce tax bills (such as by concealing income) is called tax evasion.

Glossary of Personal Financial Terms

AAA Rating

In short, AAA ratings (‘triple-A‘ ratings) are the highest credit rating available for an investment, such as a bond or company.

AAA ratings are issued to investment-grade debt that has a high level of creditworthiness with the strongest capacity to repay investors.

Similarly, the AA+ rating is issued by S&P (Standard and Poor) and is similar to the Aa1 rating issued by Moody’s. It comes with very low credit risk and indicates the issuer has a strong capacity to repay.