Q: 2
John deliberately understated his income so that he could pay a lesser amount on his tax bill. This is
an example of tax avoidance.
Options
Discussion
B. deliberate understatement is tax evasion. A is the trap here, pretty sure.
Its B, not A. Deliberately understating income is evasion, which a lot of people mix up with avoidance on these.
Not another trick wording like this… B.
C or D? Actually, B fits better. Deliberately misstating income is tax evasion, not avoidance. Avoidance uses legal loopholes while evasion is illegal. Some might pick A if they're thinking avoidance just means paying less tax.
Seeing similar questions in the official study guide and practice tests, looks like B is what they expect.
B similar question came up on my practice. Intentional understatement is evasion, not avoidance.
B tbh, deliberately misstating income is evasion not avoidance. Tricky wording but A is the trap.
I don't get why anyone would pick A here. B
Probably B. Understating income is tax evasion, not avoidance-easy to mix up if you rush.
Pretty sure it's B
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