Amarendra Bhuyan
Assistant Professor, Department of Commerce, KISS DU ORCID-0000-0002-0117-6572
Snigdharani Panda
Associate Professor & Chairperson Council of Deans, KISS DU ORCID-0000-0002-4469-0811
Abstract
A tax is a mandatory fee or financial charge levied by any Government upon the public or organization to collect revenue for public works or public benefit. It is a compulsory extraction made by the Government from the public. But the assessed want to save tax because he thinks it is his/her hard-earned money so he wants to save it. Generally, there are two ways to save tax. One is tax avoidance and another is tax evasion. Where the former is legal and as per the provisions of the tax law and the latter is illegal. Tax avoidance is the use of legal mechanisms available in the tax laws to avoid the payment of tax. There are many provisions in the tax law where a person can invest his/her money so that he/she does not have to pay the tax or he/she can avoid the payment of tax. Whereas tax evasion is illegal because in case of tax evasion the method adopted to not to pay tax is not according to law. So, where tax avoidance is legal way but tax evasion leads to fine, penalty and it is a criminal offence also. Tax avoidance is not taken as harmful and illegal because in case of tax avoidance the assessee have to invest his/her money in to some prescribed investment in which the society or country is benefited but in case of tax evasion the assessee have taxable income and he suppress the taxable income either by way of under reporting the sale or over reporting the deductions in which the county loses the amount of tax to be payable. Tax evasion and tax fraud not only defrauds the Government but it also acts an un-level playing field for compliant tax payers. Now days there are various technologies available by adopting which the tax evasion can be prevented or it can be minimized. These technologies help in data recording technology in electronic cash register electronic sales machines and automated reporting and it curbs the tax evasion techniques adopted by the assesses to a great extent. This topic tends to critically analyses the tax evasion and suggest the techniques to be used by Government agencies to prevent tax evasion by the general public.
KISS International Journal of Entrepreneurship, Innovation and Sustainability (KIJEIS) 2025 Jul, Vol.1 (1): 47 – 57