BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When a business under declares their level of profit.
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When Joe Citizen claims an excessive number of deductions.
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When a firm moves to a country with lower taxes than their home country
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All of the previous / other answers are correct.
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Detailed explanation-1: -It includes concealing or fabricating income, falsifying deductions without proof. Another tax evasion example is failing to declare cash transactions, etc. People utilize various methods to avoid paying taxes, including filing fraudulent tax returns, smuggling, falsifying documents, and bribery.
Detailed explanation-2: -The most common attempt to evade or defeat a tax is the affirmative act of filing a false return that omits income and/or claims deductions to which the taxpayer is not entitled.
Detailed explanation-3: -Tax evasion is an illegal act where you as an individual or company avoid paying the tax liability. Tax evasion is a serious offence and comes under criminal charges and substantial penalties. For example, not paying taxes or paying less than what you should pay is considered tax fraud and comes under tax evasion.