Tax Spinning Law and Legal Definition
Tax spinning is a British tax avoidance technique in which an oil company acts as a trader to buy and sell oil for profit and at the same time act as the supplier of that same oil.
Tax spinning is the arm's-length sale by an integrated oil producer to a third party and a substantially simultaneous purchase of a similar quantity of oil at substantially the same price for use in that producer's refineries [Transnor (Bermuda), Ltd. v. BP North America Petroleum, 738 F. Supp. 1472, 1479 (S.D.N.Y. 1990)].
