Question

In: Finance

legislature enacts a mileage-based user fee, which measures the miles driven in state as the base...

legislature enacts a mileage-based user fee, which measures the miles driven in state as the base for taxation. If the driver chanes the amount of driving to pay less tax, the driver engaged in the following?

A. Tax Avoidance

B. Tax evasion

C.Tax Compliance

D. Tax efficiency

Solutions

Expert Solution

If driver changes the amount of driving to pay less tax, the driver engaged in the B. Tax evasion.

A. Tax Avoidance - It's a legal method to minimize the amount of income tax.

B. Tax Evasion - its a illegal method to avoid paying true tax liability.

C. Tax Compliance - it refers to pay tax timely and accurately by following the tax laws and regulations.

D. Tax Efficiency - it's an attempt to minimize tax liability by given many financial decision.


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