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Which of the Following Statements Best Describes the Process of Tax

Question 55

Multiple Choice

Which of the following statements best describes the process of tax planning?


A) Tax planning is equivalent to tax evasion.
B) Tax planning is the avoidance of "tax traps."
C) Tax planning is the process of arranging one's financial affairs to minimize one's overall tax liability.
D) Tax planning is the deferral of tax on income.
E) Tax planning is the calculation of a taxpayer's marginal rate of tax.

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