A 'tax liability' refers to:
A)the fine incurred when a taxpayer is caught evading tax
B)the amount of tax a taxpayer owes at the end of the financial year
C)the taxpayer who is liable to pay the tax
D)the fine incurred when a taxpayer is caught avoiding tax

Question

Quizplus · Accepted Answer

Tax liability refers to the amount of tax a taxpayer is obligated to pay at the end of the year after taking into account any applicable deductions or credits. It does not refer to fines or penalties for tax evasion or avoidance.

A 'Tax Liability' Refers To