Which of the Following Statements About Tax Avoidance and Tax

question 12

Multiple Choice

Which of the following statements about tax avoidance and tax evasion is false?

• A) Tax avoidance is legal, while tax evasion is illegal.
• B) The difference between avoidance and evasion is clearly defined in the tax law.
• C) Tax evasion is a federal felony offence.
• D) Taxpayers should not regard tax avoidance as unethical.

---

Definitions:

Bookkeeper

A person responsible for recording the financial transactions and maintaining the financial records of a business.

Restricted Formulary

A list of prescription drugs covered by a prescription drug plan or another insurance plan offering prescription drug benefits, which limits coverage to specific medications.

Therapeutic Class

A classification of medications and therapies that serve similar medical purposes or are used to treat the same condition.

Pharmaceutical Products

These are drugs and medications designed for use in medical diagnosis, treatment, or prevention of diseases.