ACC312 Federal Taxation Tax avoidance/Tax evasion questions 1. The entity variable: Which entity undertakes the transaction? 2. The time period variable: During which tax year or years does the transaction occur? 3. The jurisdiction variable: In which tax jurisdiction does the transaction occur? 4. The character variable: What is the tax character of the income from the transaction? Solution Tax evasion is the illegal means of reducing taxes. tax planning has four variables. 1. entity 2. Time period 3. Jurisdiction 4. Character so, the above four questions are based on the tax planning variables..