Accounting · Income Tax
Which one of the following correctly distinguishes tax avoidance from tax evasion?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Tax avoidance and tax evasion are synonymous concepts.
- 2Both tax avoidance and tax evasion are punishable offences.
- 3Tax avoidance is legal tax planning within the framework of law, whereas tax evasion involves concealment of income.✓
- 4Tax avoidance is illegal, whereas tax evasion is legal.
Correct answer
Tax avoidance is legal tax planning within the framework of law, whereas tax evasion involves concealment of income.
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