Tax avoidance transactions are often called:
A) Earnings management
B) Tax shelters
C) Employee fraud
D) Attest services

Question

Quizplus · Accepted Answer

Tax avoidance transactions are commonly referred to as tax shelters, which involve using legal strategies to minimize tax liability. Option A refers to manipulating financial statements to present a more favorable picture of a company's performance, which is not related to tax avoidance. Option C refers to employees engaging in illegal activities to benefit themselves, which is also not related to tax avoidance. Option D refers to services provided by auditors to evaluate and confirm the accuracy of financial statements, which is again not related to tax avoidance.

Tax Avoidance Transactions Are Often Called