Tax avoidance may be defined or characterized as: (Please select all that apply.)
A) An illegal activity of non-payment of tax
B) A legal activity of tax planning by large companies to minimize corporation tax on the economic activity they conduct in a specific jurisdiction
C) A way of minimizing tax liabilities that is not illegal but might be judged to be immoral
D) Using tax law to gain a tax advantage not intended by Parliament

Question

Quizplus · Accepted Answer

Tax avoidance involves legally minimizing tax liabilities, often through strategic financial planning, and may include exploiting loopholes or inconsistencies in tax law, which might not align with the intentions of lawmakers or may be considered immoral by some, but it is not illegal like tax evasion.

Tax Avoidance May Be Defined or Characterized As: (Please Select