Tax avoidance: its causes and effects and its concept of legality I Pakistan.

Abstract

The research paper is highlighting the difference between two concepts of evasion of tax and avoidance of tax. Both of the concepts exist in the taxation system of the whole world, but there is a thin line between these actions. The difference is discussed in detail, also the avoidance of tax is affecting the country of Pakistan to the same extent as the evasion does or not. In the following research project the main focus is on the tax avoidance in Pakistan, along with its causes and effects on the country. The research project also focuses on the matter of its legality, which is further explained with the help of the provisions enacted by the Parliament in the statutes related to taxation. The following research paper also differentiates between the other terms and concepts related to taxation system for instance the tax mitigation. A comparative study of Pakistan with other countries and how the taxation system can become efficient in the country is been discussed. Hence there is a border line between the evasion and avoidance and it is proved within the research paper that tax avoidance has almost the same impact as of the evasion.