This study aims to critically review and analyse the causes and solutions for tax avoidance in New Zealand. The research will explore relevant sections of the Income Tax Act and make recommendations for further research and development. Tax avoidance is gaining further awareness amongst people as are the legal implications that surround tax avoidance. This study makes use of secondary research in which data is collected primarily through review of literature that is made available through published journal articles, periodicals and books. During the research, it was found that the general public has different understandings of tax avoidance. The research also aims to review the sections of the New Zealand Income Tax Act 2004, particularly the sections containing the anti-avoidance laws and ways in which the operation of New Zealand's tax avoidance laws can improve. It will also analyse and recommend what a model tax system should be and the legislation that it should follow to eliminate tax-avoidance.