The gift tax is used to prevent people from avoiding the

a. excise tax.

c. income tax.

b. estate tax.

d. customs duty.

Question

Social Studies

Wizard

16 March, 09:18

The gift tax is used to prevent people from avoiding the

a. excise tax.

c. income tax.

b. estate tax.

d. customs duty.

+5

Answers (1)

Know the Answer?

Warren Hunter · Answer 1

The correct answer is the estate tax: the tax one has to pay when one inherits from another person. So to avoid transmission of wealth during the person's lifetimes (for example when they suspect they might die soon) the gift tax was introduced.

The gift tax is used to prevent people from avoiding thea. excise tax.c. income tax.b. estate tax.d. customs duty.

The gift tax is used to prevent people from avoiding the

a. excise tax.

c. income tax.

b. estate tax.

d. customs duty.