Which of the following is a consequence of not engaging in tax planning?

Choosing to not engage in tax planning can lead to a higher potential for tax violations. Tax planning involves understanding and complying with tax laws, making use of available deductions, credits, and tax strategies to minimize liabilities. When businesses do not engage in such planning, they may inadvertently misinterpret tax obligations or overlook compliance requirements, resulting in errors that can lead to violations of tax regulations.

For instance, without proper tax planning, a business might fail to file necessary documents on time, misreport income or expenses, or miss out on identifying legitimate deductions, which could trigger audits or penalties. Therefore, the absence of tax planning directly increases the risk of making mistakes that could be classified as tax violations.

The other choices focus on benefits or advantages associated with proactive financial behavior rather than the consequences of neglecting tax planning.