Tax evasion is _____________________________________________________________________.

Points: 1

1. When taxpayers attempt to deceive the Canada Revenue Agency (CRA) by knowingly reporting more tax payable than what the law obligates them to pay.
2. When taxpayers do not sign their tax returns either with an electronic signature or hand-written signature.
3. When taxpayers repeatedly miss the filing deadline of April 30th.
4. When taxpayers legally apply tax law to reduce or eliminate taxes payable in ways that the Canada Revenue Agency (CRA) considers potentially abusive with regards to the Income Tax Act.
5. None of the above.