Choosing Tax-Free Fringe Benefits Instead of an Equivalent Hike in Salary

question 16

Multiple Choice

Choosing tax-free fringe benefits instead of an equivalent hike in salary is an example of tax planning by:

• A)accelerating income recognition
• B)changing the timing of recognition of taxable income
• C)avoiding income recognition
• D)all of these are correct

---

Definitions:

Import Quotas

Restrictions set by a government on the quantity of a specific good that can be imported into a country.

Net Exports

The value of a country's total exports minus the value of its total imports, which is a component of a country's GDP.

Import Restrictions

Measures imposed by a government to control the quantity of goods coming into a country, often to protect domestic industries.

Trade Deficit

An excess of imports over exports.