Which of the Following Statements About Tax Avoidance and Tax

question 12

Multiple Choice

Which of the following statements about tax avoidance and tax evasion is false?

• A) Tax avoidance is legal, while tax evasion is illegal.
• B) The difference between avoidance and evasion is clearly defined in the tax law.
• C) Tax evasion is a federal felony offence.
• D) Taxpayers should not regard tax avoidance as unethical.

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Definitions:

Scanty

Insufficient in quantity or amount; minimal.

Mal-

A prefix in English derived from French, indicating bad, wrongful, ill, or defective.

Bad

Generally denotes something unfavorable, harmful, or of poor quality.

Prefixes

Morphemes added to the beginning of words to alter their meaning or create new words.