Question

Select the correct answer.

Which phrase refers to the legal act of lowering an individual’s tax liability?

A.
mill levy
B.
tax avoidance
C.
tax evasion
D.
underreporting income

Answer 1

A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending ...

Answer 2

B.) Tax Avoidance

Explanation:

Tax avoidance is the use of legal methods to minimize the amount of income tax owed by an individual or a business.

Credit: Investopia.com