The income shifting and timing strategies are examples of:
A) tax avoidance.
B) tax evasion.
C) illegal taxpayer strategies.
D) All of the choices are correct.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Income shifting and timing strategies are legitimate tax avoidance strategies that are used to legally reduce a taxpayer's tax liability. Tax avoidance is the legal minimization of tax obligations by using methods approved by the tax laws. Tax evasion, on the other hand, is illegal and involves intentionally failing to report income or claiming false deductions to avoid paying taxes. Therefore, the correct option is A.

The Income Shifting and Timing Strategies Are Examples Of