Tax Evasion is one of the major problems that Tax Administrations face the world over. This is however
more pronounced in Developing countries. Tax Evasion is defined in this paper as the act of illegally
paying less taxes (or not paying at all) than the amount legally required by the tax law. This is in contrast ·
to Tax Avoidance which contains some elements of legality as it is defined as the reduction of tax liability
by practices that take fuil advantage of the loop holes in the tax law.
There are several reasons that have been cited as the major causes of Tax Evasion, especially in
developing countries. Among such reasons are high tax rates that increase tax burdens, inadequate and
weak tax law legislations which are coupled by lower levels of tax law enforcement, general
dissatisfactions with the public service provisions and, the presence and extent of the parallel economy
in these countries.
This paper focuses on analyzing the methods that Tanzania employs in counteracting Tax Evasion and
how they can be improved. At the core of the paper is the fact that Tax Evasion can be controlled by
looking at the Tax law and also the various administrative measures that go along with enforcing it. It
further singles out and recommends reviews in the Tax law such as the enhancement of penalties and
the broadening of transactions that require Tax Clearance Certificates, such as the tendering process.
The paper also recommends a review in the staff capacity and its abilities.
In this regards tax evasion would be reduced if the tax laws were adjusted and modified to suit the tax
payers. This would achieve the Tanzania government' desire of increasing revenue.
Research, A. & MATURO, E (2021). The Nature Of Tax Laws And Their Effects On Tax Evasion Case Study Of Kilombero Market In Arusha Tanzania. Afribary. Retrieved from https://afribary.com/works/the-nature-of-tax-laws-and-their-effects-on-tax-evasion-case-study-of-kilombero-market-in-arusha-tanzania
Research, AfroAsia, and ELIBAHATI MATURO "The Nature Of Tax Laws And Their Effects On Tax Evasion Case Study Of Kilombero Market In Arusha Tanzania" Afribary. Afribary, 12 Jun. 2021, https://afribary.com/works/the-nature-of-tax-laws-and-their-effects-on-tax-evasion-case-study-of-kilombero-market-in-arusha-tanzania. Accessed 25 Jul. 2021.
Research, AfroAsia, and ELIBAHATI MATURO . "The Nature Of Tax Laws And Their Effects On Tax Evasion Case Study Of Kilombero Market In Arusha Tanzania". Afribary, Afribary, 12 Jun. 2021. Web. 25 Jul. 2021. < https://afribary.com/works/the-nature-of-tax-laws-and-their-effects-on-tax-evasion-case-study-of-kilombero-market-in-arusha-tanzania >.
Research, AfroAsia and MATURO, ELIBAHATI . "The Nature Of Tax Laws And Their Effects On Tax Evasion Case Study Of Kilombero Market In Arusha Tanzania" Afribary (2021). Accessed July 25, 2021. https://afribary.com/works/the-nature-of-tax-laws-and-their-effects-on-tax-evasion-case-study-of-kilombero-market-in-arusha-tanzania