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WAEC Economics 2006 Question 41

Question 41

Public Finance

Which of the following is a form of tax evasion?

  1. A.Wrong declaration of earnings
  2. B.Payment of flat rate tax
  3. C.Constant change of employment
  4. D.Low capacity utilization.
Show the answer and explanation

Answer: A (Wrong declaration of earnings)

Explanation

Tax evasion is illegally avoiding tax, for example by under-declaring income.