ICANTaxationTax Planning and Ethics2024

Which of the following best describes acceptable tax planning?

AConcealing income from the tax authority
BArranging transactions before they occur so as to attract the lowest lawful tax burdenCORRECT
CBackdating documents to fall within an earlier tax year
DOverstating expenses to reduce assessable profit
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Tax planning is the lawful ordering of affairs in advance to minimise tax, using reliefs and incentives as intended by law. Concealment, backdating and overstated expenses are evasion and are criminal.
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