There are three different methods in Malaysian taxation to reduce the tax liability which are tax planning, tax avoidance and tax evasion. These three methods considered very important for tax payable and also tax authority. All the methods are different and interchangeable.

Required:

1. Briefly explain the meaning of:
   1. Tax planning
   2. Tax avoidance
   3. Tax evasion

(3 marks)

2. Discuss FOUR (4) features and differences between the tax planning, tax avoidance and tax evasion. Illustrate your answer by giving example for each method.

(12 marks)