91.1k views
1 vote
The gift tax is used to prevent people from avoiding the

a. excise tax.
c. income tax.
b. estate tax.
d. customs duty.

User Achedeuzot
by
7.4k points

1 Answer

1 vote
The gift tax is used to prevent people from avoiding the:
estate tax! (answer b)

The situation in which these taxes are employed is wealth inheritance: Gift tax is used when a person wants to pass down their wealth during their lifetime (which is sometimes down by the elderly to avoid this estate tax)

User Marcel Gheorghita
by
7.7k points