Statutory Laws and Legal Remedies to Curb Tax Evasion in India By- Mohd Shad

Statutory Laws and Legal Remedies to Curb Tax Evasion in India

Authored By- Mohd Shad

 

“Bad humor is an evasion of reality; good humor is an acceptance of it”.

….. Malcolm Muggeridge….

 

CHAPTER-Ⅰ

INTRODUCTION

Tax is the yardstick and essential factor in the nation's overall developments, which improves people's livelihoods and increases their per-capita income. In developed and developing nations have required citizens to pay taxes. This includes service providers, business owners, government employees, and other groups[1]. If these people are fairly paying tax to the Government then Government will use that money to construct massive dams, transportation infrastructure, and high-quality social services for the community at large. When compared to developed countries, tax evasion practices are worse in developing nations. Further we see, in the developing countries do no have sufficient means to collect tax from the tax payers, so their condition worst as compared to developed nations. Tax reduces inequality between the different class groups, i.e rich and poor. If tax payer paying tax properly then it will also reduce social conflict to the some extent. Basically, Tax evasion is intentional misrepresentation or concealment of the true condition of their affairs to the tax authorities in an effort to lower their tax liability or to avoid the tax liability by declaring less income, earnings, or gains than they actually received or by misrepresenting their costs. As a result, funds that might have been used for social and economic advancement are instead being used for illegal activity[2].

 

tax evasion can result in a devastating loss to the nation's GDP, hence it has become a controversial and special concern to the tax collector agencies. It has become a epidemic for countries, because they are unable to control it. The extent of tax evasion is also influenced by chartered accountants and tax lawyers who aid companies, organisations, and people in avoiding paying taxes[3]. Because there are many people, who are not aware about how to evade tax, these professionals provide guidance for tax evasion.

 

SCOPE AND OBJECTIVE:-

This paper discusses the concept of tax evasion problem in India and endeavour to see how tax evasion problem increasing day by day and what are the root causes of tax evasion problem in India. what are the remedies available to curb the tax evasion problem. If  every citizen become law abiding citizen then definitely our country will run smoothly, so everyone who is come within the category of tax payer, must pay tax. It will show love towards their country. The Society will also grow in which tax payers are living and no one will die due to the hanger.

 

OBJECTIVE:-

• To do in depth analysis origin and some causes of tax evasion problem in India.
• To develop a comprehensive understanding of the phenomenon of tax evasion.
• To find out the various other causes which give rise to evasion of tax.
• To analyse the impact of it over the Indian economic system.
• The main objective of this paper is to explanation of statutory laws and legal remedies to curb tax evasion in India.

 

HYPOTHESIS:-

How far the income tax Act,1961 is effective for controlling the menace of tax evasion in present situations. If anyone is found to be involved in tax evasion and other activities incidental thereto, then what is the punishment provided under Act. Further, how legal remedies proved to be a tool in prevention of tax evasion.

 

LITERATURE REVIEW:-

1. “Law Relating to Socio-Economic Offences” by Prof. (Dr) Nuzhat Parveen Khan

This book covered wide range of  topics and in which author also discussed tax evasion and avoidance. This book specially deals with the various types of socio-economic offences, in which tax evasion and avoidance also covered. Writer discussed the meaning and definition of tax evasion, what is the difference between tax evasion and avoidance, what are the reason and methods to evade the taxes and avoidance of taxes, statutory laws related to tax evasion and avoidance and their penal provisions and judicial approach towards the tax evasion and avoidance. Further, Author deals with how to curb tax evasion and avoidance as well as recommendations. But in this book author did not covered guidelines and schemes issued by the government time to time to curb the tax evasion and avoidance. Recommendations given by author are very limited which not much helpful to curb the tax evasion.

 

1. “Factors influencing taxpayers to engage in tax evasion: evidence from woldia city administration micro, small, and large enterprise taxpayers” by Kassa E.T

In this article author tried to find out factors that encourages taxpayers to engage in tax evasion by identifying the five factors moral obligation, tax fairness, tax knowledge, subjective norms, and taxpayers’ attitude towards the behaviour. In this article writer used the correlation coefficient and regression method to analyse the factors of tax evasion. In in paper writer discussed the various factors that influence the tax payer to evade the tax but above five given are much effected factors. There are many loopholes in this article as writer did not discussed laws related tot tax evasion to a particular country. There is no discussion of case laws in this study. Further, this study basically deals with a particular city not for a country it means it has very limited scope to analysis the factors that influence the taxpayer to evade tax.

 

1. “Tax Evasion and  Black Money in India: Causes and Remedies” by M. Chandrappa.

This article emphasis on the causes of tax evasion and factors that influence the black money, also explain the meaning of black money. It further says that what are the  measures taken by the government for black money and tax evasion and impact of black money on economy. This is very short article in which very limited source of tax evasion discussed, there many loopholes in this article such as it does not deals with provision of tax evasion and penal provisions as well as case laws. It does not deal with the measures to curb the tax evasion.

 

1.  “An Empirical Study of Tax Evasion and Tax Avoidance: A Critical Issue in Nigeria Economic Development” by Fatoki Jacob Obafemi.

This article basically deals with the tax evasion and avoidance in Nigeria. In Nigerian tax codes, there is no distinction between tax evasion and tax avoidance, they did not try to define and make difference between them, but writer try to define the tax evasion and avoidance. It further deals with effects and causes of tax evasion and avoidance in Nigeria, and give briefly recommendation. This article also not deals with statutory laws of tax evasion of Nigeria and not also deals with the case laws related to tax evasion.

 

1. Tax evasion vs. Tax Avoidance by Varun Varma. This article defines tax avoidance and what constitutes tax evasion. It also describes the differences between tax avoidance and tax evasion as well as the characteristics of tax avoidance, how courts see tax avoidance, what constitutes tax evasion, and how the judiciary views tax evasion-related activities. In this article many ambiguities as it does not discussed the statutory laws, measures to curb tax and not given any recommendations related to tax evasion and avoidance.

 

RESEARCH QUESTIONS:-

1.What is the concept  tax avoidance?

2.What are the reasons for avoiding tax?

3.How to curb out tax avoidance problem from India?

4.What are the methods applied for tax evasion?

5.What are the penalties available for tax evasion in India legal system?

6.What is the impact on economy of tax evasion and avoidance?

7.What are the remedies available to tax evasion ?

8.Does the Income tax Act,1961 have the requisite provisions dealing with tax evasion and avoidance problem in India?

9.How tax evasion and tax avoidance problem can be corrected through the legal help and to what extent that will benefit to society?

 

CHAPTERISATIONS:-

Here the first chapter is the introduction which contains that scope and objective, Literature review, Hypotheses, research questions and the research methodology. The second chapter is about the concept of concept of tax evasion and tax avoidance. The third chapter is about the causes and methods of tax evasion and avoidance. The fourth chapter is about the statutory laws and remedies of tax evasion and avoidance. The last and fifth chapter deals with the conclusion and suggestions.

 

RESEARCH METHODS

The research methodology used for the present research paper is traditional doctrinal research method. There are generally two methods of carrying out a research viz. primary and secondary. Primary method is a method in which facts and data are collected on first hand basis directly by the researcher however in secondary method the researcher does an indirect research by conducting a research on some other researcher’s findings. Hence the method adopted for this project has been a secondary method of research as most of the most information can be sought from the available literature by referring books, articles, journals and websites etc.

CHAPTER-Ⅱ

CONCEPT OF TAX EVASION

AND TAX AVOIDANCE

The concept of tax evasion is worldwide concern and it affects every economy irrespective of national differences. Every person or assessee in a nation hopes to discover a means to evade paying taxes. He wants to utilise any possible method to avoid paying or evading taxes. Sometimes people use these two words, tax evasion and tax avoidance interchangeable, because they are not aware about the exact difference between them. Before making this paper I was also not aware their exact meaning. But, there is clear-cut difference between them. Tax evasion and tax avoidance both have same goal to reduces taxes of an individual, a company, or any other legal entity. The basic difference is that tax evasion is criminal act and tax avoidance is not criminal act.

 

Tax evasion is the practice of avoiding taxes through illegal methods. Tax evasion techniques sometimes involve a person or a company misrepresenting their income to the Internal Revenue Service. Misrepresentation can take the form of understating income, exaggerating deductions, or completely concealing money and its interest in offshore accounts[4].further we can say tax evasion is a crime in which a person or a corporate entity knowingly underpays or conceals a specific amount of revenue in order to reduce their tax liability. In all nations, this practice is undoubtedly illegal. Tax evasion term means not paying taxes by failing to disclose all taxable income or by claiming unauthorised deductions. It was created between 1920 and 1925 in England[5].

 

Anyone who can avoid paying taxes is regarded as an intelligent person. According to popular belief, the word "tax avoidance" refers to a scenario in which a taxpayer lowers his tax liabilities by taking advantage of statutory ambiguities and loopholes. Tax avoidance is a legal way to reduce the tax burden because it is not illegal[6].Tax avoidance, according to Professor Wheat Craft, "is an art of winning games without actually cheating, beating the internal revenue and the government to their own game"[7]. The shortest definition of tax avoidance that I have come across is "the art of dodging tax without breaking the law[8]."

 

Difference between tax evasion and tax avoidance:-

Firstly, tax avoidance includes reducing tax liabilities while abiding by all applicable laws and regulations. On the other hand tax evasion means reducing tax liabilities bye using of illegal means. Secondly, tax avoidance is morally wrong to use legal loopholes to your advantage in order to avoid paying taxes. The practise of tax evasion is regarded as illegal and unethical/immoral. Thirdly, Tax avoidance is legally permitted. Whereas the tax avoidance is not legally permitted, it is an illegal act.

 

CHAPTER-Ⅲ

CAUSES AND METHODS OF TAX

 EVASION AND AVOIDNCE:-

It is important for every nation to understand the root causes of complicated phenomena like tax evasion, because there is no other way to identify a strategy to combatting it. On the other hand, it's important to note that the causes differ from one nation to another. There are number of causes of tax evasion and avoidance in this world, some are given below as[9]:-

• The way in which the nations' tax systems are set up.
• Lack of affection with the nation.
• Anarchic distribution of power among the various governmental divisions, especially in federal countries.
• Bribery of tax officers.
• population with low levels of education.
• The tax laws are not clear and accurate.
• Inflation.
• High tax rates.
• A significant informal economy.
• Permanent regularisation systems (moratoriums, whitewashing, etc.
• Promotion policies (tax incentives, exemptions and tax expenses).
• Lack of communication regarding the usage of tax-funded resources.
•  Lack of tax integrity among citizens.
• Lack of efficiency of tax administrations.
• presence of multinational companies using aggressive tax planning.
• Tax havens (offshore financial) –any country or territory that offer to foreign businessman and individuals minimal or no tax liability, i.e Bermuda , Netherlands , Switzerland, Hong Kong etc.
• There is a heavy emphasis on intangibles, which makes it challenging to assign them a meaningful value and identify their origin point.
• A financial system with several complex calculations that enable simple and quick money mobilisation.
• expansion of special tax structures for luring investments (e.g. tax rulings).
• Controlling the transfer pricing of associated multinational corporations is challenging, these companies handle approximately 60% of global trade and 50% are intragroup operations.
• There are growing challenges for taxing and governing the digital economy due to the major technological advancements in electronic commerce, collaborative platforms, digital currencies, and new methods of commercialising commodities and services.
• Inequitable distribution of income[10].
• Lack of awareness[11].

These are some causes of tax evasion and avoidance which are given above, there may be some other causes also. Due to these reasons an individual or company tries to evade tax. It is very difficult to find out main reasons of tax evasion and avoidance for a country.

 

Methods of Tax evasion and avoidance:-

There are many methods by which an individual or company may evade tax and tax avoidance. which are given below:-

• The simplest way to avoid paying taxes is by failing to make a payment when it is due. Even when the government demands payment, they simply refuse to pay. This kind of tax evasion occurs when a person refuses to pay the tax, either before or after the deadline or due date.
• Double taxation:- When income tax is paid twice on the same source of income, it is referred to as double taxation, at the individual level and corporate level.   The term "double taxation" can also apply to the taxation of the same income by two different states[12].
• Legal vagueness :- tax results basically depends on the term of legal definition which are vague in nature. For Example, vagueness of the distinction between “Business expenses” and “Personal expenses” is of much concern for assessee or taxpayers and taxing authorities[13].
• Smuggling:- There may be requirement to pay tax or charge in order to move some goods when they cross state or international borders from one place to another. However, some people can shift these products secretly in order to avoid paying such taxes or to completely evade the tax. This is the another method of tax evasion[14].
• filing incorrect tax returns:- A person may sometimes provide false or inaccurate information while filing taxes. He tries to reduce or avoid paying the required amount of tax[15].
• claiming exemption with false documentation:- the government had granted specific privileges and exemptions to particular social classes or groups of people. Government wants to uplift them. For example- members who don't truly qualify for the benefits which were provided by the government, make false documentation for getting the benefits provided by the Government[16]. For example, Ms. Z is fifty-seven years old. However, to avail of senior citizen benefits, she falsifies her age as sixty-four.
• Not declaring earnings/ under reporting income:- Sometime a person not declare his income or may show under reporting income due to which he tries to evade tax[17].
• Bribery:- There may be instances where a person is unwilling to pay the full amount of taxes that are required. In such a situation, he or she might actually offer officials a bribe in order to prevent them from paying the tax and to make it "disappear[18]."
• storing money abroad/ keeping wealth in other countries:- this is the another methods to evade tax and to avoid tax. When a person or company wants to keep safe their money in other countries due to which they can evade tax. i.e swiss bank[19].
• Black money.
• Showing income as agriculture:- sometimes a company or an individual invest their money for the purpose of business in agricultural activities but showing their income as agricultural income due to which the evade tax.

 

CHAPTER-Ⅳ

STATUTORY LAWS AND  REMEDIES

Tax evasion is criminal act under Indian income tax Act,1961. Chapter 22 of income tax act basically deals with the penalties related to tax evasion, which provides hefty penalties and in some cases jail also. There are following instances which provides hefty penalties under or jail for non-compliance rules and regulation of income tax act, 1961. Which are given below as[20]:-

 

• Failing to file a tax return:- The assessing officer may fine you up to Rs 5,000 if you fail to submit your income tax return as required by Section 139, subsection (1) of the Income Tax Act[21].
• Failure to provide PAN or incorrect PAN:- When you start working for a company, if you don't give them your PAN number, 20% TDS will be taken out of your pay rather than the usual 10%. If the PAN you provided is wrong, you could be subject to a Rs 10,000 fine[22].
• Not paying tax as per demand notice:-  if the demand notice send to assesses asking for payment of tax then he has to pay that amount within 30 days to the tax department. If he fails to make that payment, he will have to face penal provisions as well as will be treated as a defaulter assesses for not paying that amount[23].
• Failure to pay tax as per self-assessment:- according to section 140A(1), If the assessee fails to pay tax either wholly or partly self-assessment tax or interest at that time asssessee will be treated as defaulter person. if the taxpayer is declared as defaulter person then as per section 221(1) a penalty amount will be imposed by the assessing officer. The penalty criteria is that it cannot exceed to arrear amount. Discretion to imposed penalty basically depends on tax officer, if assessee gives reasonable excuses then officer may exempt him from the penalty[24].
• Before filing an income tax return, not checking Form 26AS:-  first of all, we should review Form 26AS's details several times because any discrepancy could result in harsh penalties. Similar sanctions will be applied for income, expense, and investment data inconsistencies[25].
• Concealing income to avoid paying taxes:- According to Section 271(c), the penalty increases from 100% to 300% of the tax that was evaded in situations where the taxpayer tries to hide the original earnings or income[26].
• Avoiding an audit of your accounts:- A taxpayer is required under Section 44AB to have the account audited or to provide a report of audit. If this is not done, there will be a fine of 0.5% of all sales, turnover, or gross receipts, or Rs. 1,50,000, whichever is greater. The penalty levied is Rs 1,000,000 or higher if the taxpayer fails to provide the report from an accountant as required by Section 92E[27].
• According to Section 276C, a taxpayer knowingly attempt to evade paying taxes or underreport income that exceeds Rs 25 lakh. He will have to face minimum 6 Month imprisonment which may extend upto7 years or imprisonment and fine also[28].
• failure to comply to TDS rules:- Any person who collects or deducts tax at source must also obtain the tax deduction and collection account number (TAN), Otherwise a penalty of 10,000 will be imposed.

Further, A penalty of Rs 200 per day is imposed on the firm or organisation if they don't submit their tax deducted at source (TDS) or tax collected at source (TCS) on the deadlines date, that penalty cannot extend to the TDS amount.    The tax authorities may also levy fines for providing inaccurate information or failing to submit TDS or TCS returns by the deadlines. The fine may be between 10,000 and 100,000 rupees[29].

• Failure to pay dividend distribution tax:- According to sec 115-O, if a company fails to pay dividend distribution tax on the dividends it has shared then the penalty incurred would  be the amount equal to the tax that was not deducted or paid[30].
• Failure to comply with income tax notice:- if the taxpayer fails to comply with the income tax notice issued under section 142(1) or section 143(2)  then tax officer can issue a notice to assessee to ask (a)  to file the return of income (b) ask the tax payer to furnish in writing all the details of assets and liabilities[31].

 

Remedies to curb tax evasion and avoidance in India:-

There many remedies available to curb the tax evasion and tax avoidance in India, still this issue not resolve after having many remedies to curb the tax evasion. Which are given below as:-

 

• One hopes the goods and service tax (GST) will help overall revenues by not only increasing the base efficiency of tax collection but also minimizing the scope for tax evasion and tax avoidance.
• Low tax rates.
• Instil patriotic feeling in taxpayers.
• Simple tax legislation system[32].
• Well organised tax administrative structure.
• In India, there is a legislation against avoiding taxes called the General Anti-Avoidance Rule (GAAR). It becomes effective on April 1st, 2017. GAAR particularly prohibits transactions whose only aim is to evade taxes[33].
• Make a good and permanent tax structure.
• Raise awareness among taxpayers, by holding seminars, conferences, and using the   social media.
• Laws related to SEZs should be reviewed or amended which helps us to prevent the tax loss of several lakh crore rupees.
• The existing tax laws and the technologies make the tracking evasion more complicated.
• There should be transparency in transaction which involves the public money.
• There should be adequate competition among the stakeholders.
• Make anti-corruption laws more effective.

 

JUDICIAL INTERPRETATION ON TAX EVASION AND TAX AVOIDANCE

There are following cases of tax evasion and tax avoidance which are given below:-

 

(1). In commissioner of income- tax v Sri Abhyananada Rath Family Trust[34], it was held that  the evading payment of tax is different from the tax planning as in the earlier the evasion means “ to try illegally to avoid paying tax”.

(2) in CIT V Bihari ji Construction (India) Ltd[35], It was held that reduction in tax burden is not an offence, unless the transaction were not genuine and were contrary to the provision of income tax law.

(3) in Vodafone, international holdings B.V v union of India and anr[36]., the court held that:-

• Companies and other entities are to be viewed as economic entities with legal independence vis a vis their shareholders/ participants.
• Its is fairly well accepted that a subsidiary and its parent company are totally distinct tax payers.

 

CHAPTER-V

CONCLUSION

Tax is yardstick in overall development of nation, it plays vital role in the development of nation. It improves the standard of livelihood of a country. If people are paying tax regular and in proper way then we may say no one will die due to hanger. Tax also reduces the social conflict. Tax evasion and avoidance main debatable issue for every nation, we can say, it is epidemic for a county which is very difficult to remove. Sometimes, taxpayers may participate in tax evasion for a variety of reasons. While some taxpayers may believe that tax evasion is morally acceptable, others may disagree. they say "We Do Not Receive Benefits, Therefore We Do Not Have to Pay,". In India tax payers applied different methods to evade tax and avoidance, the reason is that they are not aware, lack of education, lack of affection with country, and loopholes in tax legislation due to which the evade tax. We need to instil good values in people or feeling of patriotic, then they may be ready to pay tax. Further we can take an example of Kerala’s Government which introduces “Lucky Bill App” to combat GST evasion. So other governments should also apply these types of methods to prevent tax evasion and avoidance. Government should design a well and permanent tax structure, it should not be change due to political instability. When a new government come into power they will try to change the tax system due to which it is difficult to follow the tax system. We need to follow simple and permanent well-structured tax legislation. At the end I can say, my hypotheses proved.

 

SUGGESTIONS:-

• Usage of high denomination of currency notes must be curtailed to control and curb the black marketing which is one of the most common forum of tax evasion.
• PAN card and Aadhar card registration must be made compulsory for all the form of platform which accepts online money like Paytm, Phone Pay, etc.
• Taxing agricultural income to prevent income source concealment or fraud.
• Taxing the donations to political parties.
• Need for common international framework to check diverting of incomes to tax heavens.
• Chartered accountant must be held liable for providing assistance to convert the black money into white money to people who deals with black market and hoarding.
• Advocates, Chartered accountant, company secretary and others who help the people in evasion and avoidance of tax must be strictly punished. Because they provide the methods, how to evade taxes. In India huge population are still uneducated, they got help from the educated or professional persons.
• To instil patriotism in the people and encourage them to pay the tax on time. Additionally, the government needs to launch several awareness programmes at every level and give taxpayers some benefits also.
• To know the root causes of tax evasion and make simple and effective tax legislation which helps to curb tax evasion and avoidance in India. the main failure of simple and effective legislation is that even the legislature does not want to make such type of effective legislation because they are also indulged in the activities of tax evasion and avoidance. If they make any smooth and effective legislation then they will also catch by the tax officers. I suggest that tax legislation should be simple and more effective.
• Government should also remove the multiple taxes or different type of taxes causes burden on taxpayers, due to which they try to evade tax, as Calvin Coolidge said  "Collecting more taxes than is absolutely necessary is legalized robbery”, that’s why Government should not charge multiple taxes.

BIBLIOGRAPHY

 

 LEGISLATIONS:-

• The income tax Act, 1961.
• Prevention and corruption Act, 1988.

BOOKS:-

• Prof. (Dr) Nuzhat Parveen Khan, “Law Relating to Socio-Economic Offences” (central law publication, Edn.1st 2018).

 

ARTICLES AND JOURNALS:-

• Kassa E.T “Factors influencing taxpayers to engage in tax evasion: evidence from Woldia city administration micro, small, and large enterprise taxpayers” Journal of Innovation and Entrepreneurship 10, 8 (2021).
• M. Chandrappa, “Tax Evasion and  Black Money in India: Causes and Remedies” IJMRR/Oct. 2016/ Volume 6/Issue 10/Article No-2/1376-1381.
• Anil Kumar Jain, “Tax Avoidance and Tax Evasion: The Indian Case” Modern Asian Studies, 1987, Vol. 21, No. 2 (1987), pp. 233-255.
• Fatoki Jacob Obafemi, “An Empirical Study of Tax Evasion and Tax Avoidance: A Critical Issue in Nigeria Economic Development” Journal of Economics and Sustainable Development, Vol.5, No.18, 2014.

 

WEBSITES:-

• Definition of tax evasion, available at: https://www.law.cornell.edu/wex/tax_evasion (last visited on 22 November 2022).
• Definition of tax evasion, available at: Tax Avoidance v. Tax Evasion (taxguru.in) (last visited on 22 November 2022).
• Tax avoidance, available at: 16410 (iiste.org)(last visited 22, November 2022).
• Causes of tax evasion, available at: Which are the causes of tax evasion? | Inter-American Center of Tax Administrations (ciat.org) (last visited on 23 november,2022).
• Methods of tax evasion and avoidance, available at: What is Tax Evasion? Know Common Methods & Penalties (bankbazaar.com) (last visited on 24 November 2022).
• Methods of tax evasion and avoidance, available at: Difference Between Tax Evasion and Tax Avoidance - Tax2win(last visited on November on 25, 2022).
• Penalties related to tax evasion, available at: https://timesofindia.indiatimes.com/business/faqs/income-tax-faqs/income-tax-evasion-know-about-penalties-under-income-tax-act/articleshow/59895566 (last visited on November 25, 2022).
• Tax evasion penalties, available at, https://timesofindia.indiatimes.com/business/faqs/income-tax-faqs/income-tax-evasion-know-about-penalties-under-income-tax-act/articleshow/59895566.cms (last visited on 26 November, 2022).
• Penalties of tax evasion, available at: https://cleartax.in/s/tax-evasion-and-penalties-inindia#:~:text=The%20penalty%20may%20range%20between%20Rs%2010%2C000%20and%20Rs%201%2C00%2C000.&text=As%20per%20 (last visited on 26 November, 2022).
• Measure to Curb tax evasion,availableat:https://www.legalserviceindia.com/legal/article-3728-tax-evasion-and-controlling-tax-evasion-by-indians.html (last visited on 27 November,2022)
•  General Anti-Avoidance Rule, available at; General Anti-Avoidance Rule (GAAR) - Know more about GAAR [IAS Economy Notes] (byjus.com)(last visited on 28 November,2022).

 

 

---

[1] Kassa E.T “Factors influencing taxpayers to engage in tax evasion: evidence from Woldia city administration micro, small, and large enterprise taxpayers” Journal of Innovation and Entrepreneurship 10, 8 (2021).

[2] M. Chandrappa, “Tax Evasion and  Black Money in India: Causes and Remedies” IJMRR/Oct. 2016/ Volume 6/Issue 10/Article No-2/1376-1381.

[3] Ibid.

[4] Definition of tax evasion, available at: https://www.law.cornell.edu/wex/tax_evasion (last visited on 22 November 2022)

[5]Definition of tax evasion, available at: Tax Avoidance v. Tax Evasion (taxguru.in) (last visited on 22 November 2022)

[6] Anil Kumar Jain, “Tax Avoidance and Tax Evasion: The Indian Case” Modern Asian Studies, 1987, Vol. 21, No. 2 (1987), pp. 233-255.

[7] Tax avoidance, available at: 16410 (iiste.org)(last visited 22, November 2022)

[8] Mc Dowell & Company Limited vs The Commercial Tax Officer, on 17 April, 1985,

[9] Causes of tax evasion, available at: Which are the causes of tax evasion? | Inter-American Center of Tax Administrations (ciat.org) (last visited on 23 november,2022)

[10] Fatoki Jacob Obafemi, “An Empirical Study of Tax Evasion and Tax Avoidance: A Critical Issue in Nigeria Economic Development” Journal of Economics and Sustainable Development, Vol.5, No.18, 2014.

[11] Ibid.

[12] Prof. (Dr) Nuzhat Parveen Khan, “Law Relating to Socio-Economic Offences” 151, central law publication, edn.1st (2018).

[13] Ibid.

[14] Methods of tax evasion and avoidance, available at: What is Tax Evasion? Know Common Methods & Penalties (bankbazaar.com) (last visited on 24 November 2022)

[15] Ibid.

[16] Ibid.

[17] Ibid.

[18] Ibid.

[19] Methods of tax evasion and avoidance, available at: Difference Between Tax Evasion and Tax Avoidance - Tax2win(last visited on November on 25, 2022)

[20] Penalties related to tax evasion, available at: https://timesofindia.indiatimes.com/business/faqs/income-tax-faqs/income-tax-evasion-know-about-penalties-under-income-tax-act/articleshow/59895566 (last visited on November 25, 2022)

[21] Tax evasion penalties, available at, https://timesofindia.indiatimes.com/business/faqs/income-tax-faqs/income-tax-evasion-know-about-penalties-under-income-tax-act/articleshow/59895566.cms (last visited on 26 November, 2022)

[22] Ibid.

[23] Supra note 12 at 158

[24] Ibid.

[25] Supra note 21

[26] Penalties of tax evasion, available at: https://cleartax.in/s/tax-evasion-and-penalties-in-india#:~:text=The%20penalty%20may%20range%20between%20Rs%2010%2C000%20and%20Rs%201%2C00%2C000.&text=As%20per%20 (last visited on 26 November, 2022)

[27] Supra note 12 at 158.

[28] Ibid.

[29] Ibid.

[30] Ibid.

[31] Ibid.

[32] Measure to Curb tax evasion, available at: https://www.legalserviceindia.com/legal/article-3728-tax-evasion-and-controlling-tax-evasion-by-indians.html (last visited on 27 november,2022)

[33] General Anti-Avoidance Rule, available at; General Anti-Avoidance Rule (GAAR) - Know more about GAAR [IAS Economy Notes] (byjus.com)(last visited on 28 November,2022).

[34] 2022 I OLR 476

[35] (2007) 289 ITR 303

[36] (2010) 320 ITR 469(P&H)