Theory: there is an equilibrium between cost of tax and cost of tax avoidance. Some of the tax avoidance costs are amortized over a broader time period than any

Theory: there is an equilibrium between cost of tax and cost of tax avoidance. Some of the tax avoidance costs are amortized over a broader time period than any particular tax and this requires the provision of specialist knowledge and skills. Once a tax avoidance service provider is engaged there is an incentive for the provider to go after remaining tax even if the avoidance to tax cost ratio is not as favorable as the base reason to engage the provider. The result of this is that once the avoidance to tax threshold is passed there is an larger affect on tax payments than the arithmetic amount of tax over the initial threshold.