Thomas Franklin claimed an additional $3,000 in deductions he knowingly knew he did not qualify for so he could reduce his tax bill.This is referred to as tax:
A)avoidance.
B)acceleration.
C)evasion.
D)delaying.
E)deferment.

Question

Quizplus · Accepted Answer

Thomas Franklin's actions constitute tax evasion, which involves illegally claiming deductions or not reporting income to reduce tax liability. Tax avoidance, on the other hand, is the legal use of the tax regime to one's own advantage, to reduce the amount of tax that is payable by means that are within the law.

Thomas Franklin Claimed an Additional $3,000 in Deductions He Knowingly