Sweety runs a candy store. She prefers her customers to pay in cash instead of electronic transfers. Since the transaction is not documented, she can show a lower income and escape taxes. What is this practice called?

Tax benefit

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Tax evasion

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Tax return

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Tax exemption

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Solution

The correct option is B Tax evasion
When Sweety shows a reduced income, she is illegally avoiding taxes. This practice is referred to as tax evasion. Tax evasion can harm the economy gravely, and the person involved in this act can be penalised.

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Sweety runs a candy store. She prefers her customers to pay in cash instead of electronic transfers. Since the transaction is not documented, she can show a lower income and escape taxes. What is this practice called?

The correct option is B Tax evasionWhen Sweety shows a reduced income, she is illegally avoiding taxes. This practice is referred to as tax evasion. Tax evasion can harm the economy gravely, and the person involved in this act can be penalised.

The correct option is B Tax evasion
When Sweety shows a reduced income, she is illegally avoiding taxes. This practice is referred to as tax evasion. Tax evasion can harm the economy gravely, and the person involved in this act can be penalised.