Question on: JAMB Economics - 2020
The use of legally permissible means to reduce tax liabilities is known as tax?
A
evasion
B
avoidance
C
relief
D
exemption
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Correct Option: C
Tax avoidance involves using legal methods to minimize one's tax obligations. This is different from tax evasion, which is illegal. Tax relief and exemption are specific types of tax benefits but don't encompass the broad concept of using legal means to reduce tax liability.
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