This document discusses tax evasion in Bangladesh and provides recommendations to reduce it. It identifies several reasons for tax evasion including high tax rates, corruption, and weak enforcement of tax laws. It outlines techniques used like underreporting cash transactions, creating excessive provisions, and underinvoicing imports and exports. A conceptual framework is presented relating factors like education level, employment status, and ethics to motivations for tax evasion. Penalties for tax evasion are discussed along with examples of evasion by individuals, foreign workers, and both multinational and national companies. Recommendations include social awareness programs, simplifying the tax system, and using rewards or penalties.
2. Submitted By : Team Skyscrapers
Team Member Name ID
Sumon Mia 20151212044
Farzana Alam Tithi 20150110245
Mehedi Hasan 20151212046
Aslam Sheik 20151212047
Abid Hasan 20151212048
Gause Kazi 20151212050
Sohan Hawlader 20151212051
Manik Bala 20151212053
5. Reasons of tax evasion in Bangladesh
High Tax Rate Lack of Control by tax
administration
Corruption by the tax officials
High Compliance cost Low quality of the service in return
for taxes
Weak enforcement of tax laws
6. Technique and mode of tax evasion
Not recording cash
transection
Creating reserve & provision
for bad debts
Showing benami
transection
Showing cash credit
Under invoicing by importers and
exporters
Claiming excessive tax deduction
&tax exemption
Showing excessive wastage of raw
materials in production process
Low tax morale of the tax
payers
7. Conceptual framework of tax evasion in Bangladesh
Level of Education
Employment Status
No. of Dependents
Motivation Factor
Ethics Factor
Knowledge Factor
