The use of legally permissible means to reduce tax liabilities is known as tax?
Answer Details
The use of legally permissible means to reduce tax liabilities is known as tax avoidance. Tax avoidance is the practice of using legal methods to minimize the amount of tax that an individual or business owes. This is different from tax evasion, which is the illegal practice of not reporting or underreporting income to avoid paying taxes. Tax avoidance can include actions such as taking advantage of tax deductions, tax credits, and tax shelters. While tax avoidance is legal, it can be controversial because some people argue that it can contribute to income inequality and reduce the government's ability to fund public services. Therefore, the correct option is "avoidance".