The Manager of Little Company Ltd

question 7

Multiple Choice

The manager 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 manager is engaging in

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

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Definitions:

Evolutionary-developed

Pertains to characteristics, systems, or processes that have evolved over time through natural selection and adaptation.

Heuristics

Mental shortcuts or rules of thumb that ease the cognitive load of making a decision.

Decision Making

The process of identifying and choosing alternatives based on the values and preferences of the decision-maker.

Shelf-space

The amount of area or space available on shelves in a store allocated to display products.