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WAEC Economics 2025 Objective — Question 43

Question 43 of 51 from the West African Examinations Council (WAEC) Economics 2025 Objective paper, with the correct answer and a full explanation.

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Tax avoidance best refers to attempts by a payer to

  • A. conceal income deliberately thereby paying no tax.
  • B. always seek for tax holidays during which he will not pay tax.
  • C. legally exploit the loopholes in tax laws to pay less tax.Correct
  • D. escape illegally from the tax net thereby paying no tax at all.

Explanation

Tax avoidance is the legal exploitation of loopholes in tax law to reduce one's tax liability.

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