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Recent Tax Measures to Combat TAX EVASION


Recent Tax Measures to Combat


Among many reasons of low tax-to-GDP ratio, tax evasion at corporate and non-corporate levels is the principal one. Tax-registered persons are much fewer than the persons who are liable for registration under tax laws. Even the registered persons try to evade taxes by under-reporting their taxable incomes. A large number of registered taxpayers file below-taxable income tax returns. Moreover, size of withholding tax regime is quite large but tax evasion in this regime, too, cannot be overruled.

In order to control tax evasion, a number of measures have been announced in the recent past and this article discusses those briefly.

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