Which of the following strategies can corporations use to reduce tax liability legally?

Utilizing tax credits and deductions is a legitimate and effective strategy for corporations to reduce their tax liability. Tax credits directly reduce the amount of tax owed, meaning a dollar-for-dollar reduction, which can significantly lower a corporation's tax bill. Deductions, on the other hand, lower the taxable income of a corporation, which in turn reduces the overall tax liability based on the tax rate applied to that income.

Corporations can take advantage of various tax credits, such as those for research and development, renewable energy investments, and hiring certain qualified workers. Similarly, deductions can be claimed for allowable business expenses such as salaries, operating costs, and depreciation of assets. By strategically planning and identifying applicable credits and deductions, corporations can optimize their financial position while complying with tax laws.

The other options do not represent legal strategies; tax evasion techniques represent illegal actions to avoid paying taxes, while disregarding tax laws would lead to significant legal consequences. Reporting only cash transactions could potentially skew financial reporting and would not be compliant with standard accounting practices or tax requirements. Thus, utilizing tax credits and deductions remains the sound and lawful approach for corporations seeking to manage their tax liabilities effectively.