Which of the Following Correctly Distinguishes Between Tax Evasion and Tax

question 102

Multiple Choice

Which of the following correctly distinguishes between tax evasion and tax avoidance?

• A)Tax evasion is legal, whereas tax avoidance is illegal.
• B)Tax evasion is illegal, whereas tax avoidance is legal.
• C)Tax evasion involves taxpayers understating their incomes, whereas tax avoidance involves taxpayers overstating their incomes.
• D)Tax evasion involves taxpayers overstating their incomes, whereas tax avoidance involves taxpayers understating their incomes.
• E)Tax evasion is reported, whereas tax avoidance goes unreported.

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