STRATEGIES TO DEAL WITH TAX EVASION

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DECLARATION

I declare that the content presented in this thesis/dissertation is, in my understanding and opinion, original and has not been presented for scholarly assessment in the past, either completely or partly, for an academic degree at this educational institution or elsewhere. I would also like to admit that I have studied and understood the principles, prerequisites, processes and guidelines of the University regarding the higher academic degree research award and to my dissertation. I would also like to declare that I have abided by the University's principles, prerequisites, processes and guidelines.

ABSTRACT

The tax evasion has become bad-evil in the taxation system of United Kingdom (UK). This study is based on the tax evasion in some corporate firms of United Kingdom (UK). The secondary approach was used by observing the published articles and e-journals regarding the tax evasion in the UK. People have blamed the tax authorities' situation for source of income regarding with tax system. The study aimed towards the investigation that why citizens evade taxes in the United Kingdom. In this study, a descriptive research design is utilized. The situation outcomes in the government's inability are to render these essential services regarding inequality in the society and resentment's creation among the honest taxpayers. The researcher tried to accomplish the goal is to check boundless and evasion criminal acts in the United Kingdom. The overall study recommends some useful measures for preventing the tax evasion. It is recommended that more public campaign based on clarification should be planned upon the establishment of Revenue Courts and government by the SG - State Governments as they have powers for imposing heavy penalties regarding monetary and criminal sanctions.

DECLARATIONII

ABSTRACT1

CHAPTER 1: INTRODUCTION3

1.1 Background3

1.2 Statement of the Problem4

1.3 Aims & Objectives of the study5

1.3.1 Aims5

1.3.2 Objectives5

1.4Research Questions5

1.5Significance of the study5

1.6Limitations of the study6

CHAPTER 2: LITERATURE REVIEW7

2.1 Definition of Tax Evasion7

2.2 Forms of Tax Evasion7

2.3 Model of Tax Evasion8

2.4 Tax Payers Compliance8

2.5 Strategies to deal with tax evasion in the UK8

2.6 Corruption within the government8

2.7 Employment Tax Evasion9

2.8 Causes of Tax Evasion10

2.8.1 High tax rates may result as a tax burden to the citizens10

2.8.2 Tax evasion's control10

2.8.3 Tax Formation11

2.8.4 Tax Protestors and Tax Resistance12

CHAPTER 3: RESEARCH METHODOLOGY13

3.1 Research Method13

3.1.1 Primary Data13

3.1.2 Secondary Data14

3.2 Model16

3.3 Research Design16

3.4 Process Used for Systematic Literature Review17

CHAPTER 4: ANALYSIS AND DISCUSSION18

4.1 Discussion18

4.1.1 Particular Techniques followed by tax payers in evasion of Taxes in UK18

4.2 Reasons Behind Crimes Related to Tax Evasion19

4.3 Government Approaches to Deal with Tax Evasion Scenarios in UK.20

4.3.1 Methods Practiced by the UK Government and Authorities in Identifying Tax Evasion:20

4.4 How Tax is evaded?20

4.5 Effectiveness of Government response21

4.6 The effect of tax evasion on the economy21

5.1 Conclusion22

BIBLIOGRAPHY23

APPENDICES26

Appendix-I: Tax gap for 2010 - 2011 by behaviour in the United Kingdom (UK)26

Appendix-II: Top 10 Countries Losing to Tax Evasion27

CHAPTER 1: INTRODUCTION

To uplift one's society, it is necessary that the citizen of that country should be patriotic with the nation. The tax payment indicates towards the demonstration of such type of desire in the ...