If a Taxpayer Decides to Take Advantage of an Ambiguous

question 79

Multiple Choice

If a taxpayer decides to take advantage of an ambiguous tax issue to reduce future tax costs, the decision increases:

• A) Financial risk
• B) Audit risk
• C) Tax law uncertainty
• D) Marginal tax rate uncertainty

---

Definitions:

Nature

Refers to the physical world and everything in it, including plants, animals, landscapes, and other features and products of the earth, as opposed to humans or human creations.

Nurture

The act of nurturing and promoting the development or expansion of someone or something.

Freud's Theory

A set of psychoanalytic concepts introduced by Sigmund Freud, focusing on unconscious motivations and childhood experiences.

Parent-Child Relationship

The dynamic and enduring bond between a parent and their children, characterized by a combination of affection, care, and guidance.