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Kerry is a registered tax agent with several small business customers

Finance Aug 21, 2020

Kerry is a registered tax agent with several small business customers. She generally advises her clients to access various tax incentives or tax breaks that are validly available under legislation that reduce the impact of tax in relation to their business activities. Kerry makes sure that the client is eligible for each election or choice and that it achieves the policy intended by the legislation. This behaviour is most likely an example of: Tax evasion O Tax avoidance Tax avoidance scheme promotion Tax planning
Question 5 1 pts Kerry is a registered tax agent with several small business customers. She generally advises her clients to access various tax incentives or tax breaks that are validly available under legislation that reduce the impact of tax in relation to their business activities. Kerry makes sure that the client is eligible for each election or choice and that it achieves the policy intended by the legislation. This behaviour is most likely an example of: Tax avoidance Tax planning Tax avoidance scheme promotion Tax evasion

Expert Solution

Kerry is a registered tax agent who advises the client for various tax incentives or tax breaks which are valid under the legislation .

So, this behaviour of Kerry is :-

Answer :- TAX PLANNING

Explanation :-

Tax planning is a method to minimise tax using the tax incentives , tax breaks ( concession , grants and allowances ) given by the government . Tax planning is completely legal . Tax planning is a way so that tax payer makes use of every eligible deduction for which he or she qualifies .

Other options are wrong as tax avoidance is a method to minimise tax by using the loopholes of the tax system or the law . Tax avoidance is valid but it is unethical .

Tax evasion is a method to reduce taxes by unfair means ( manipulating the accounts , hiding relevant information ) . Tax evasion is illegal .

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