Which of the following statements best describes the process of tax planning? Oa. Tax planning is the calculation of a taxpayer's marginal rate of tax. Ob. Tax planning is equivalent to tax evasion. Oc. Tax planning is the deferral of tax on income. Od. Tax planning is the avoidance of "tax traps." Oe. Tax planning is the process of arranging one's financial affairs to minimize one's overall tax liability.
Which of the following statements best describes the process of tax planning? Oa. Tax planning is the calculation of a taxpayer's marginal rate of tax. Ob. Tax planning is equivalent to tax evasion. Oc. Tax planning is the deferral of tax on income. Od. Tax planning is the avoidance of "tax traps." Oe. Tax planning is the process of arranging one's financial affairs to minimize one's overall tax liability.
Chapter12: Tax Administration And Tax Planning
Section: Chapter Questions
Problem 12P
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Transcribed Image Text:Which of the following statements best describes the process of tax planning?
Oa. Tax planning is the calculation of a taxpayer's marginal rate of tax.
Ob. Tax planning is equivalent to tax evasion.
Oc. Tax planning is the deferral of tax on income.
Od. Tax planning is the avoidance of "tax traps."
Oe. Tax planning is the process of arranging one's financial affairs to minimize one's overall tax liability.
Transcribed Image Text:Which of the following is the best definition of tax planning?
Oa. Planning taxpayers' financial affairs to find the best way to avoid tax by successfully bending tax law
Ob. Planning taxpayers' financial affairs in an effort to minimize tax liability
Oc. Researching complex tax issues
Od. Preparing a client's tax return
Oe. None of these choices are considered tax planning.
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