Death and tax are, perhaps, the most upsetting realities of life. The two are inevitable but while the former is natural, man as a means to achieving socio-economic justice, created the latter.
Due to the failure of the human system as opposed to nature, tax is less inescapable than death. Yet, the extent to which individuals and organisations could cheat the tax system depends on culture, legal system and laxity or otherwise of the enforcement mechanism. The tendency towards tax evasion, some studies have shown, is directly correlated with the cost of living and business transactions. This suggests that businesses and individuals are less willing to fulfill their tax obligations when times are hard.
A recent study says governments around the world lose about $427 billion yearly to tax avoidance and evasion as companies and wealthy individuals push their assets to tax havens.
Indeed, ‘tax havens’ have become an uncomfortable phrase as the global community grapples with the…
Source: Guardian Newspaper
