Tax avoidance is the process by which a person or entity uses the tax laws of their state or government for the purpose of reducing the amount of tax that said person or entity owes under the tax laws of their country or state. There are a number of ways that people try to achieve tax avoidance. They change their residence to a safe-haven country. The United States avoids this tax avoidance method by charging tax on all income earned no matter where in the world a person earned it. Some people move their taxable assets to a safe-haven country. Usually it is not enough, though, to just move them. A person most often must also move to the country in order to avoid paying tax. Some people practice tax avoidance by donating their asset(s) to a company, trust or foundation. The tax obligation is then put on the entity that receives the asset.