The Controller of Little Company Ltd

question 4

Multiple Choice

The controller of Little Company Ltd.has decided to sell a piece of capital equipment after the company's year-end in order to avoid paying tax on capital gains this year.The controller is engaging in

• A)tax planning.
• B)tax avoidance.
• C)tax evasion.
• D)GAAR.

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Definitions:

Plaintiff's Injury

The harm or damage suffered by the plaintiff that forms the basis of their claim in a lawsuit.

Negligence Per Se

is a legal doctrine that deems an act as negligent because it violates a statute or regulation.

Noise Pollution

Unwanted or harmful outdoor sound created by human activities, such as traffic, construction, or industrial operations.

Functioning Muffler

A device on a vehicle or machinery that reduces noise produced by the exhaust system.