Taxes can be deleted or not paid in cases where they deal with evasion. Such examples are, as unreported income or are called under or no reporting incomes serving as a lower tax base to calculate tax and consequently to pay less tax dues. Another example for how taxes can be avoided or removed is by shifting the location of the business from a geographic area to another. Deviation motives are clear, but what remains unclear is economic cost calculation that it costs to the country and the welfare of its people.

Evasion can cause legal consequences in the way of the organization of work by choice inefficient oriented organization. To avoid distortions that may have born between economic activities in relation to each other, given the different growth rates and by a very great change of welfare created by each economic sector to another, as a result of infrastructure changes the scheme businesses will probably be the function of progressively differentiated taxation of economic…

Source by Eduart Gjokutaj

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