Which of the Following Tax Planning Strategies Is Based on the Present

question 3

Multiple Choice

Which of the following tax planning strategies is based on the present value of money?

• A) conversion.
• B) income shifting.
• C) tax avoidance.
• D) timing.
• E) None of the choices are correct.

---

Definitions:

Circumstances

The conditions or facts affecting a particular event, situation, or decision, often beyond an individual's control.

Behaviour

The way in which one acts or conducts oneself, especially towards others.

Global warming

The long-term rise in Earth's average surface temperature, primarily due to human activities like burning fossil fuels, which increase greenhouse gas levels in the atmosphere.

Carbon dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, heavily involved in the Earth's carbon cycle.