Duff is really interested in decreasing his tax liability, and by
his very nature he is somewhat aggressive. A friend of a
friend told him that cash transactions are more difficult for the
IRS to identify and, thus, tax. Duff is contemplating using this
"strategy" of not reporting cash collected in his business to
minimize his tax liability. Is this tax planning? What are the
risks with this strategy?
Recently Asked Questions
- Please refer to the attachment to answer this question. This question was created from Chapter 20-11.
- Instead of hiring a gardener, I mow my neighbor's lawn every other week and he mows my lawn every other week, do I have taxable income?
- A Canadian-controlled private corporation (CCPC), is entitled to the small business deduction, and pays taxes of 20%, on taxable income of $10,000. All the