6
QuizMultiple Choice

Paying Taxes — Quiz

Question 6 • Personal Finance

The act of purposely failing to pay taxes is known as

Answer
A
a progressive system.
B
withholding.
C
tax evasion.
D
a tax penalty.

Explanation

Purposely failing to pay taxes is called tax evasion. Withholding is money taken from earnings and sent toward taxes, while a tax penalty is a consequence for breaking tax rules. Therefore, the correct choice is tax evasion.

AI-written and checked against the verified answer.

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