When a taxpayer attempts to legally reduce her tax liability,what is she engaging in
A)tax avoidance
B)tax evasion
C)a tax return compensation plan
D)activities outside the intent of tax law

Question

Quizplus · Accepted Answer

Tax avoidance involves using legal means to reduce one's tax liability, such as claiming allowable deductions or utilizing tax credits. Tax evasion, on the other hand, involves illegal actions to avoid paying taxes, such as failing to report income or claiming false deductions. A tax return compensation plan is not a recognized term within taxation and activities outside the intent of tax law refer to actions that go against the purpose or intent of tax law, such as engaging in fraudulent transactions.

When a Taxpayer Attempts to Legally Reduce Her Tax Liability,what