Causes of Tax Evasion and its Impact on Development in Bangladesh: A Legal Analysis

Abstract

Paying taxes is a responsibility imposed by the government on its citizens, serving as a major financial source for public expenditure and development, and currently serving as an economic policy instrument. Without boundaries, tax evasion is a problem. The economies in transition and developing nations are the most severely affected by tax evasion. Bangladesh has a strong informal economy, poor tax culture and low compliance rate. Within the context of Bangladesh's legal system , this paper is a legal analysis of causes of tax evasion and its impact on the development in Bangladesh.