Final answer:
The rule that a taxpayer should pay the least tax legally permitted at the latest date allowed is called the upward gaming rule. This rule suggests that taxpayers should exploit all legal tax-saving measures and postpone tax payments until the latest date allowed.
Step-by-step explanation:
The rule that a taxpayer should pay the least tax legally permitted at the latest date allowed is called the upward gaming rule. This rule suggests that taxpayers should exploit all legal tax-saving measures and postpone tax payments until the latest date allowed.
For example, a taxpayer might choose to maximize deductions by claiming all possible tax credits and deductions, such as home mortgage interest, medical expenses, and charitable contributions. They may also delay the payment of taxes until the final deadline in order to maximize their cash flow.
Implementing the upward gaming rule requires careful tax planning and a thorough understanding of the tax laws and regulations. Taxpayers can work with tax professionals, such as accountants or tax advisors, to ensure compliance with the law while minimizing their tax liabilities.