Africa is losing nearly $89 bn a year in illicit financial flows such as tax evasion...
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"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.
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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:
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