Which of the Following Statements Best Describes the Process of Tax

question 50

Multiple Choice

Which of the following statements best describes the process of tax planning?

• A)Tax planning is equivalent to tax evasion.
• B)Tax planning is the avoidance of "tax traps."
• C)Tax planning is the process of arranging one's financial affairs to minimize one's overall tax liability.
• D)Tax planning is the deferral of tax on income.
• E)Tax planning is the calculation of a taxpayer's marginal rate of tax.

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Definitions:

Assault

A threat of violence or injury to a person.

Battery

The unlawful touching or striking of another person.

Negligence

Failure to take proper care in doing something, leading to damage or injury to another.

Injurious Falsehood

False statements about a firm, its products or business practices intended to dissuade others from doing business with the firm.