The income-shifting and timing strategies are examples of:
A)tax avoidance.
B)tax evasion.
C)illegal taxpayer strategies.
D)All of the choices are correct.
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

Income-shifting and timing strategies are legitimate methods of reducing tax liability, known as tax avoidance. Tax evasion, on the other hand, involves illegal actions such as failing to report income or claiming false deductions to avoid paying taxes. Therefore, option B and C are incorrect. Option D is incorrect because illegal taxpayer strategies are not acceptable under any circumstances.

The Income-Shifting and Timing Strategies Are Examples Of