Premium Essay

Tax Evasion in Bangladesh

In: Business and Management

Submitted By razu4817
Words 5263
Pages 22
“TAX EVASION & AVOIDANCE -
A REAL PROBLEM FOR BANGLADESH”

INTRODUCTION:
Tax evasion and avoidance are both phenomena that are probably as old as taxation itself. Wherever and whenever authorities decide to levy taxes, individuals and firms try to avoid paying them. Though this problem has always been present, it becomes more pressing in the course of globalization as this process extends the range of opportunities to dodge taxation while simultaneously reducing the risk of being detected. Developing and emerging countries like Bangladesh are particularly vulnerable to tax evasion and avoidance activities of individual taxpayers and corporations. While tax revenues in OECD-countries are almost 35 per cent of GDP ,in case of Bangladesh it is only around 10%.This can be considered one of the primary reasons for large differences in the ability to mobilize own resources between developed and developing countries.
Tax evasion and tax avoidance is a great problem in our country. In Bangladesh there are many individual taxpayers and corporations who are evading or avoiding tax. As a result government’s developments activities are hampered. So, we should know about the tax evasion and tax avoidance and thereby its preventives measures.
For development of a country government needs to create infrastructure and invest in various sectors. For this activities government needs founds and tax revenue is the main source for the purpose. But due to tax evasion and tax avoidance government’s revenue generation is not sufficient. So, it is very much important for us to stop tax evasion and avoidance for accelerating economic development.

Objectives of Taxation:
Taxation is the major source of revenue for the government. In order to accelerate economic development as well as to ensure the defense, administration, social welfare and other development activities

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