Using the codes from Exercise 1, identify the basic approach(es) to tax avoidance that are used in each of the cases described below.

a. Annie invests in a mutual fund that purchases only the shares of Colonnia corporations, a country that has no tax treaty with the United States.

b. Burt moves his manufacturing plant to Mexico. Mexico has a tax treaty with the United States, but its labor and utility rates are much lower than is the case where Burt’s Ohio plant now operates.

c. Cheryl moves her manufacturing plant to Allegro. Allegro has no tax treaty with the United States, and its labor and utility rates are much lower than is the case where Cheryl’s Ohio plant now operates.

d. Donna fails to report on her tax return the interest earned on her savings account.

e. Evelyn has her controlled corporation pay her a salary instead of a dividend during the current year.

f. Flip operates his business as a regular corporation because of his high marginal tax rate. He plans to sell the corporation in five years.
g. Georgia grows most of her own food instead of taking a second job.