The Nature Of Tax Laws And Their Effects On Tax Evasion Case Study Of Kilombero Market In Arusha Tanzania

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 devel…