Western Corporation and Eastern Corporation are both owned by the same sole shareholder. An auditor reviewing Western Corporation's books and records discovers that the sole shareholder took steps to direct income earned by Eastern Corporation to Western Corporation to prevent losses from expiring in Western Corporation.

Which of the following statements is true:

(a)This transaction is an example of tax planning.

(b)This transaction is an example of tax avoidance.

(c)This transaction is an example of tax evasion.

(d)This transaction does not fit any the above categories.