Tax avoidance is the reduction of a person's tax liability through illegal means.

Name: Tax avoidance is the reduction of a person's tax liability through illegal means.
Brand: Quizplus
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Tax avoidance is the reduction of a person's tax liability through legal means, such as utilizing deductions, credits, and loopholes in tax laws. It becomes illegal when it crosses the line into tax evasion, which involves intentionally and unlawfully underreporting income or inflating deductions to avoid paying taxes.

Tax Avoidance Is the Reduction of a Person's Tax Liability