Which of the following activities would be considered tax avoidance?
A)increasing your level of charitable contributions in December
B)selling illegal drugs on the street
C)underestimating your income that is subject to taxation
D)failure of a waitress to report all tips earned on the job
E)buying a house and neglecting to deduct interest payments

Question

Quizplus · Accepted Answer

Increasing charitable contributions in December is a legal strategy to reduce taxable income, thus considered tax avoidance. The other options involve illegal activities or errors in tax reporting.

Which of the Following Activities Would Be Considered Tax Avoidance