Africa is losing nearly $89 bn a year in illicit financial flows such as tax evasion...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
"Africa is losing nearly $89 bn a year in illicit financial flows such as tax evasion and theft, amounting to more than it receives in development aid, a new UN study shows. The estimate, published on Monday in the United Nations Conference on Trade and Development's (UNCTAD) 248-page report, is the UN's most comprehensive to date for Africa. It shows an increasing trend over time and is higher than most previous estimates..." [Extract from The Times of Africa: Taxr evasion and theft 'rob Africa' of S89 bn a year: UN study dated 28 September 2020] Required: (a) Explain the term "tax evasion" in terms of its tax and legal implications and provide four examples of tax evasion. (4 marks) (b) Describe and explain the factors that might lead to serious tax evasion problems in African countries as mentioned by the above statement. (7 marks) (c) Suggest some measures the Governments in the African countries may take in order to reduce tax evasion circumstances. "Africa is losing nearly $89 bn a year in illicit financial flows such as tax evasion and theft, amounting to more than it receives in development aid, a new UN study shows. The estimate, published on Monday in the United Nations Conference on Trade and Development's (UNCTAD) 248-page report, is the UN's most comprehensive to date for Africa. It shows an increasing trend over time and is higher than most previous estimates..." [Extract from The Times of Africa: Taxr evasion and theft 'rob Africa' of S89 bn a year: UN study dated 28 September 2020] Required: (a) Explain the term "tax evasion" in terms of its tax and legal implications and provide four examples of tax evasion. (4 marks) (b) Describe and explain the factors that might lead to serious tax evasion problems in African countries as mentioned by the above statement. (7 marks) (c) Suggest some measures the Governments in the African countries may take in order to reduce tax evasion circumstances.
Expert Answer:
Answer rating: 100% (QA)
TAX EVASION Tax evasion can be defined as paying less tax than you are legally obliged toTax evasion is illegal action in which a individual or compan... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
Students also viewed these accounting questions
-
What is synergy? What are some factors that might lead to synergy? How is the amount of synergy in a proposed merger measured, and how is it allocated between the two firms stockholder? Would the...
-
List three personal factors that might lead some investors to emphasize income rather than growth in their investment planning. List three personal factors that might lead some investors to emphasize...
-
A United Nations study reported that more than 300 million low-income women owned businesses in developing countries, but only 5 million had access to credit other than from money lenders. How might...
-
International Accounting Standard No. 21, "The Effects of Changes in Foreign Exchange Rates," deals with foreign currency. It was originally issued in 1983 and was revised and reissued in 1993 as...
-
An object is 100 cm in front of a concave mirror that has a radius of 80 cm. (a) Use a ray diagram to determine whether the image is (1) real or virtual, (2) upright or inverted, and (3) magnified or...
-
Three complex ions of cobalt(III), [Co(CN) 6 ] 3 , [Co(NH 3 ) 6 ] 3+ , and [CoF 6 ] 3 , absorb light at wavelengths of (in no particular order) 290 nm, 440 nm, and 770 nm. Match each complex ion to...
-
Many companies today choose to outsource even key elements of product de- sign and development. PEP designs is a leading supplier of outsourced engineering and manufacturing product development for...
-
Pennys Pool Service & Supply, Inc. (PPSS) had the following transactions related to operating the business in its first years busiest quarter ended September 30, 2013: a. Placed and paid for $2,600...
-
(2) Let 6 a. Find y. (5 points) b. Sketch the unit circle and on it, indicate the point (x,y) as well
-
Siu is considering giving her son stock in Ace Corporation or Gold Corporation. Each has a current FMV of $500,000, and each has the same estimated future appreciation rate. Sius basis in the Ace...
-
what is the probability that an interceptor would correctly guess the message on the first try of the interceptor assume each symbol correspond to a letter of the alphabet? support your answer with...
-
Prepare the year end (December 31) adjusting entry for the following On October 1, $12,000 was collected as rent for one year and a temporary (income statement) account was credited.
-
Why did Keynes make the comment "in the long run, we are all dead"? a. He believed it was important for economists to look at economic growth in the short-run b. He thought it was vital to examine a...
-
Determine the annual tax effects (increase or decrease to taxes paid) if they decide to purchase the new machine. Assume a tax rate of 30% Depreciate assets based on the information in the case (do...
-
East Chestnut Regional Health upper management has asked you to analyze its current marketing strategies from both ethical and financial perspectives. Financial and Ethical Impact Analysis for...
-
Using Newton's Method to solve -x - cos(x) = 0, with an initial approximation of x0 = 2, the value of x3 (to 4 decimal places is: -15.4621 O -0.7419 -0.6329 O-2.2471
-
Date Account Titles and Explanation Debit Credit April 13, 2020 Investment Property Advertising Expense Repairs and Maintenance E Cash Mortgage Payable April 14, 2020 Cash Tenant Deposits Liability...
-
What types of questions can be answered by analyzing financial statements?
-
In what journal would the following transactions be recorded? (Assume that a two-column sales journal and a single-column purchases journal are used.) (a) Recording of depreciation expense for the...
-
Baden Company has gathered the following information. Units in beginning work in process ...... 0 Units started into production ......... 36,000 Units in ending work in process ........ 6,000 Percent...
-
Paris Electric sold $3,000,000, 10%, 10-year bonds on January 1, 2017. The bonds were dated January 1 and pay interest annually on January 1. Paris Electric uses the straight-line method to amortize...
-
Assume that the Polish currency (called zloty) is worth $.32. The U.S. dollar is worth .7 euros. A U.S. dollar can be exchanged for 8 Mexican pesos. Last year a dollar was valued at 2.9 Polish zloty,...
-
One year ago, you sold a put option on 100,000 euros with an expiration date of 1 year. You received a premium on the put option of $.05 per unit. The exercise price was $1.22. Assume that 1 year...
-
Explain how each of the following conditions would be expected to affect the value of the Mexican peso. SITUATION a. Mexico suddenly experiences a high rate of inflation. b. Mexico's interest rates...
Study smarter with the SolutionInn App