Which of the following best describes tax avoidance?

Tax avoidance is best described as the process of reducing taxes through legal means. This involves utilizing tax laws and regulations to minimize tax liabilities without violating any laws. Individuals and businesses may engage in tax avoidance by taking advantage of deductions, credits, and other tax incentives that are legally available to them.

The focus of tax avoidance is on strategic planning and making informed decisions that comply with existing tax laws. This differentiates it from tax evasion, which is illegal and involves deceitful practices to reduce tax obligations. Tax avoidance, on the other hand, is considered a legitimate way to manage tax exposure while adhering to the law.