A tax loophole is
A)an illegal method by which individuals or corporations avoid paying the taxes they legally owe.
B)a provision in the tax code that allows individuals or corporations to reduce their tax burdens legally by meeting certain conditions.
C)a tax surcharge on incomes within certain ranges.
D)a provision in the tax code that allows individuals or corporations to shift the economic incidence of a particular tax on to someone else.

Question

Quizplus · Accepted Answer

A tax loophole is a provision in the tax code that allows individuals or corporations to legally reduce their tax burden by meeting certain conditions. It is not illegal, and the individuals or corporations are still complying with the tax laws.

A Tax Loophole Is