Question

Which of the following is not a tax fraud?

• A. Underreporting income
• B. Inflating expenses
• C. Reporting the income yet to be received
• D. Hiding money

Answer 1

The correct option is C Reporting the income yet to be received

Tax evasion is the illegal evasion of taxes by individuals and corporates by underreporting income, inflating expenses, and hiding money. No tax is paid on evaded taxes and such an income is known as black money.