Which of the following best describes the concept of tax avoidance?

The concept of tax avoidance refers to the strategic planning and use of legitimate methods to minimize tax liabilities while adhering to the law. This includes utilizing deductions, credits, and other tax benefits that are allowed within the legal frameworks established by tax authorities.

By opting for strategies that comply with established tax law, individuals or corporations can optimize their tax situation without crossing into illegal practices, which would be classified as tax evasion. This approach to tax management is both lawful and ethical, enabling taxpayers to fulfill their responsibilities while taking advantage of the provisions designed to encourage certain types of economic behavior, such as investment in businesses or charitable donations.

Other options reflect concepts or actions that are not considered tax avoidance, such as engaging in illegal activities or claiming deductions improperly, which would fall into the realm of tax evasion or fraud. Therefore, using legitimate means to minimize tax burden accurately describes tax avoidance, as it focuses on lawful strategies for reducing tax liabilities.