What is the difference between tax avoidance and tax$$ evasion?

Question content area bottom

Part $1$

Choose the correct answer below.

A$.$

Tax avoidance is when the citizen does not pay any taxes by avoiding filing taxes payable. Tax evasion includes all legal activities and transactions that reduce or eliminate taxes payable.

B$.$

Tax avoidance occurs when taxpayers knowingly report less tax payable than what the law obligates them to pay. Tax evasion occurs when taxpayers apply tax law to eliminate taxes payable in ways that would be considered abusive of the spirit of the Income Tax Act.

C$.$

Tax avoidance includes all legal activities and transactions that reduce or eliminate taxes payable. Tax evasion is when the taxpayer does not pay any taxes by unknowingly reporting an incorrect salary.

D$.$

Tax avoidance occurs when taxpayers legally apply tax law to reduce or eliminate taxes payable in ways that would be considered potentially abusive of the spirit of the Income Tax Act. Tax evasion occurs when taxpayers knowingly report less tax payable than what the law obligates them to pay.