[A] Tax avoidance involves illegal methods to reduce tax liability, while tax evasion uses legal loopholes to minimize taxes.

[B] Tax avoidance is punishable by law, whereas tax evasion is encouraged by tax authorities as a form of financial planning.

[C] Tax avoidance applies only to corporate taxes, while tax evasion is relevant for individual income taxes.

[D] Tax avoidance utilizes legal means to reduce tax burden, while tax evasion involves illegal practices to avoid paying taxes.