Which statement best describes the legality of tax avoidance and tax evasion
A)Tax avoidance and tax evasion are both legal.
B)Tax avoidance and tax evasion are both illegal.
C)Tax avoidance is legal and tax evasion is illegal.
D)Tax avoidance is illegal and tax evasion is legal.

Question

Quizplus · Accepted Answer

Tax avoidance is the legal use of tax laws to reduce one's tax burden. It involves using legal methods to minimize one's tax liability, such as claiming deductions and credits. However, tax evasion is the illegal practice of not reporting income or claiming false deductions to avoid paying taxes. It is a criminal offense and punishable by law. While tax avoidance is legal, tax evasion is not.

Which Statement Best Describes the Legality of Tax Avoidance and Tax