Which of the Following Statements Is Correct

question 214

Multiple Choice

Which of the following statements is correct?

• A)Both tax avoidance and tax evasion are legal.
• B)Both tax avoidance and tax evasion are illegal.
• C)Tax avoidance is legal, whereas tax evasion is illegal.
• D)Tax avoidance is illegal, whereas tax evasion is legal.

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Definitions:

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.

Group Structure

The organization of a set of entities under common ownership or control, typically presented through a hierarchy that outlines the relationship between parent companies and subsidiaries.

Separate Financial Statements

Financial statements prepared for an individual company, as opposed to consolidated financial statements which combine the financials of the parent company and its subsidiaries.

AASB 139 Financial Instruments

A standard specifying the recognition and measurement of financial assets and financial liabilities.