Question

a taxpayer may choose to accept a reduced market rate of return on an investment to take advantage of a tax preference associated with the investment. in such case, the taxpayer will pay a/an:

Answer 1

If a taxpayer may choose to accept a reduced market rate of return on an investment to take advantage of a tax preference associated with the investment. in such case, the taxpayer will pay a/an: Implicit tax.

What is Implicit tax?

Implicit tax can be defined as the extra amount that a person pay for an assets if the owing  the assets does not include any form of benefit. on the other hand it can as well be defined as the decline in the income of  a person  after deducting all necessary deduction such as tax in a situation were the income of the person increase.

A taxpayer that choose top accept reduced market rate of return on their investment or assets due to the benefit they want to derived for doing that will have to pay implicit tax.

Therefore this is an example of implicit tax.

Learn more about implicit tax here:brainly.com/question/29436732

#SPJ1