Certain countries offer lower tax rates than our country. As a result, wealthy people open bank accounts in these countries, and they escape the tax burden from our country. Identify the type of tax evasion that is seen in this situation.

Underreporting income

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Inflating deductions or expenses

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Hiding money

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Hiding interests in offshore accounts

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Solution

The correct option is D Hiding interests in offshore accounts
Tax evasion is the practice of illegally avoiding taxes. When people go beyond the country's borders to escape taxation, they hide interests in offshore accounts. This tax evasion can lead to severe penalties.

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Certain countries offer lower tax rates than our country. As a result, wealthy people open bank accounts in these countries, and they escape the tax burden from our country. Identify the type of tax evasion that is seen in this situation.

The correct option is D Hiding interests in offshore accountsTax evasion is the practice of illegally avoiding taxes. When people go beyond the country's borders to escape taxation, they hide interests in offshore accounts. This tax evasion can lead to severe penalties.

The correct option is D Hiding interests in offshore accounts
Tax evasion is the practice of illegally avoiding taxes. When people go beyond the country's borders to escape taxation, they hide interests in offshore accounts. This tax evasion can lead to severe penalties.