Background of NBRThe National Board of Revenue (NBR) is the central authority for tax administration in Bangladesh. It was established by President's Order No. 76 of 1972. Administratively, it is under the Internal Resources Division (IRD) of the Ministry of Finance (MoF). MoF has 3 Divisions, headed by 3 permanent Secretaries to the Government, namely, the Finance Division the Internal Resources Division (IRD) and the Economic Relations Division (ERD). The Secretary, IRD is the ex-officio Chairman of NBR. NBR is responsible for formulation and continuous re-appraisal of tax-policies and tax-laws, negotiating tax treaties with foreign governments and participating in inter-ministerial deliberations on economic issues having a bearing on fiscal policies and tax administration.

The main responsibility of NBR is to collect domestic revenue (primarily, Import Duties and Taxes, VAT and Income Tax) for the government. Other responsibilities include administration of all matters related to taxes, duties and other tax producing fees. Under the overall control of IRD, NBR administers the Excise, VAT, Customs and Income-Tax services consisting of 3434 officers of various grades and 10195 supporting staff positions (Approved set up as on 09 Feb., 2000 AD).

Negotiating tax treaties with foreign governments and participating in inter-ministerial deliberations on economic issues having a bearing on fiscal policies and tax administration are also NBR's responsibilities. The main responsibility of NBR is to mobilize domestic resources through collection of import duties and taxes, VAT and income tax for the government. Side by side with collection of taxes, facilitation of international trade through quick clearance of import and export cargoes has also emerged as a key role of NBR. Other responsibilities include administration of matters related to taxes, duties and other revenue related fees/charges and prevention of smuggling. Under the overall control of IRD, NBR administers the excise, VAT, customs and income-tax services consisting of 3434 officers of various grades and 10195 supporting staff positions.

Taxation and its historyTaxation is one of the major sources of public revenue to meet a country's revenue and development expenditures with a view to accomplishing some economic and social objectives, such as redistribution of income, price stabilization and discouraging harmful consumption. It supplements other sources of public finance such as issuance of currency notes and coins, charging for public goods and services and borrowings. The term Tax has been derived from the French word Taxe and etymologically, the Latin word Taxare is related to the term 'tax', which means 'to charge'. Tax is 'a contribution exacted by the state'. It is a non-penal but compulsory and unrequited transfer of resources from the private to the public sector, levied based on predetermined criteria. According to Article 152(1) of the Constitution of Bangladesh, taxation includes the imposition of any tax, rate, duty or impost, whether general, local or special, and tax shall be construed accordingly. Rate is a local tax imposed by local government on its residents or the property owners of the locality, a duty is a tax levied on a commodity, and an impost is a tax imposed for an entry into a country. Under the provision of article 83 of the Constitution, "no tax shall be levied or collected except by or under the authority of an Act of Parliament". Bangladesh inherited a system of taxation from its past British and Pakistani rulers. The system, however, developed based on generally accepted canons and there had been efforts towards rationalizing the tax administration for optimizing revenue collection, reducing tax evasion and preventing revenue leakage through system loss. Taxes include narcotics duty (collected by the Department of Narcotics Control, Ministry of Home Affairs), land revenue (administered by the Ministry of Land and collected at local Tahsil offices numbered on average, one in every two Union Parishads), non-judicial stamp (collected under the Ministry of Finance), registration fee (collected by the Registration Directorate of the Ministry of Law, Justice and Parliamentary Affairs) and motor vehicle tax (collected under the Ministry of Communication).The tax structure in the country consists of both direct (income tax, gift tax, land development tax, non-judicial stamp, registration, immovable property tax, etc) and indirect (customs duty, excise duty, motor vehicle tax, narcotics and liquor duty, VAT, SD, foreign travel tax, TT, electricity duty, advertisement tax, etc) taxes. The present land revenue system of Bangladesh has its base in the East Bengal state acquisition and tenancy act 1950 which established a direct contract between the taxpayer and the government. The most important tax on the value of transferred property is the non-judicial stamp tax (levied under the Stamp Act 1899), which has been in existence since January 1899. Current rates of non-judicial stamp duty are provided in the First Schedule of the Finance Act 1998, ranging from Tk. 4 to Tk. 10,000 in case of absolute rate, or from 0.07% to 1.5% of the value of consideration in case of ad valorem rate. The judicial stamp tax is being levied under the Court Fees Act 1870, although the levy of court fees originated in the introduction of the Bengal Regulation No. 38 of 1795. The first sales tax was introduced in the former Central Provinces of India in 1938. In Bengal, sales tax was adopted in 1941. In 1948, sales tax was transferred as a central tax under the General Sales Tax Act of 1948. The Sales Tax Act 1951 came into force on 1 July 1951 by repealing the Pakistan General Sales Tax Act of 1948. Until 1982, sales tax was being collected under the 1951 Act, which was replaced by the Sales Tax Ordinance 1982. The VAT law was promulgated by repealing the Business.Income tax was first introduced in the subcontinent by the British in 1860 to make up the revenue deficit caused by the sepoy revolt, 1857. After independence of Bangladesh, income tax was made effective under the Income Tax Act 1922 passed on the basis of the recommendations of the All-India Income Tax Committee appointed in 1921. Currently, income tax has been imposed under the Income Tax Ordinance 1984 (ITO) promulgated on the basis of recommendations of the Final Report of the Taxation Enquiry Commission submitted in April 1979. Income taxpayers (assesses) are classified as individuals, partnership firms, Hindu undivided families (HUF), associations of persons (AOP), companies (publicly traded and private), local authorities, and other artificial juridical persons. Tax rates and scope of taxable income differ based on residential status of an assesses (resident or non-resident). From fiscal or assessment year, (AY) 2000-01, there is a filing threshold of annual total income of Tk. 100,000 applicable for individuals (including non-resident Bangladeshis), partnership firms, HUF, AOP and assesses other than companies and local authorities. In case an identity of this group has a total annual income less than this level, he is not required to submit tax return but if someone's income is higher, he is to pay a minimum tax of Tk. 1,000. Bangladesh inherited a system of taxation from its past British and Pakistani rulers.

Tax Authorities of BangladeshThere are 3-divisions under the Ministry of Finance (MOF) and Secretary leads each division.

The Chairman of NBR (National Board of Revenue) is working under Internal Resource Division (IRD).

NBR is the apex body of the Tax AdministrationIt consists of two parts: (1) Customs & VAT (2) Income Tax. Both are under the same authority. There are 4-members under NBR. Under the NBR, a Commissioner of Taxes is the head of the department and he is in charge of a taxes Zone. There are 8-Zones in Bangladesh.

Types of Income

Income

Non-Taxable IncomeTaxable IncomeNon-Assessable IncomeAssessable Income

Income: Income means anything received in cash or in kind unless exempted by laws. 1. Assessable Income: Assessable Incomes are those incomes, which are included in the determination of total income of a taxpayer. a) Taxable Income: Taxable Incomes are those incomes that the tax is to be paid on those incomes.b) Non- Taxable Income: Non taxable income is taken into total income for taxation rate purpose but no tax is to be paid on this part of income. 2. Non- Assessable Income: Non- assessable incomes are those incomes which are not included in the determination of total income of a taxpayer.

Classification of Tax systems

Single Tax: Only one tax for everybody. Single tax is the poll tax or the head tax or adolescent tax, which is imposed on a person simply because he is there in the society. Multiple Taxes: A system under which different types of taxes shall be levied by the govt. according to suitability. Ex. Income Tax, VAT.

Types of Taxation

Direct Tax: Direct tax is a sort of tax the impact of effect incidents and which fall back on the person on whom it is imposed. i.e.: Income Tax, Marriage Tax etc. Indirect Tax: Indirect taxes are those burden of which can be passed on others through price vehicles. Progressive Tax: The tax rate increases as the taxable income/amount increases. Regressive tax: The opposite of a progressive tax is a regressive tax where the tax rate decreases as the taxable income/amount increases. Proportional Tax: In between is a proportional tax, where tax is fixed as the amount to which the rate is applied increases.

MethodologyAmong direct taxes, income tax is one of the main sources of revenue. It is a progressive tax system. Income tax is imposed on the basis of ability to pay. The more a taxpayer earns the more he should pay''- is the basic principle of charging income tax. It aims at ensuring equity and social justice.

Sources of Income: For the purpose of computation of total income and charging tax thereon, sources of income can be classified into 7 categories, which are as follows:

Salaries Interest on securities Income from house property Income from agriculture Income from business or profession Capital gains Income from other sources.

Tax Rate (Assessment Year- 2011-12): Other than Company: For individuals other than female taxpayers, senior taxpayers of 70 years and above and retarded taxpayers, tax payable for the First 2,00,000 NillNext 3,00,000 10%Next 3,75,000 15%Next 3,00000 20%Rest Amount 25%

For female taxpayers, senior taxpayers of age 70 years and above and retarded taxpayers, tax payable for the First 2,25,000 Nil Next 3,00,000 10% Next 3,75,000 15%Next 3,00,000 20% Rest Amount 25%

Minimum tax for any individual assesses is Tk. 3,000 Non-resident Individual 25% (other than non-resident Bangladeshi)

For Companies: Publicly Traded Company 27.5% Non-publicly Traded Company 37.5% Bank, Insurance & Financial Company 45% Mobile Phone Operator Company 45% If any publicly traded company declares more than 20% dividend, 10% rebate on total tax is allowed.

Tax Rebate for investment: Rate of Rebate: Amount of allowable investment is either up to 25% of total income or Tk. 5,00,000/- whichever is less. Tax rebate amounts to 10% of allowable investment. Types of investment qualified for the tax rebate are: Life insurance premium Contribution to deferred annuity Contribution to Provident Fund to which Provident Fund Act, 1925 applies Self contribution and employer's contribution to Recognized Provident Fund Contribution to Super Annuation Fund Investment in approved debenture or debenture stock, Stocks or Shares Contribution to deposit pension scheme Contribution to Benevolent Fund and Group Insurance premium Contribution to Zakat Fund Donation to charitable hospital approved by National Board of Revenue Donation to philanthropic or educational institution approved by the Government Donation to socioeconomic or cultural development institution established in Bangladesh by Aga Khan Development Network

Who should submit Income Tax Return? If total income of any individual other than female taxpayers, senior taxpayers of 70 years and above and retarded taxpayers during the income year exceeds Tk 1,65,000/-. If total income of any female taxpayer, senior taxpayer of 70 years and above and retarded taxpayer during the income year exceeds Tk 1,80,000/-. If any person was assessed for tax during any of the 3 years immediately preceding the income year. A person who lives in any city corporation/paurashava/divisional HQ/district HQ and owns a building of more than one storey and having plinth area exceeding 1,600 sq. feet/owns motor car/owns membership of a club registered under VAT Law. If any person subscribes a telephone. If any person runs a business or profession having trade license. Any professional registered as doctor, lawyer, income tax practitioner, Chartered Accountant, Cost & Management Accountant, Engineer, Architect and Surveyor etc. Member of a Chamber of Commerce and Industries or a trade Association. Any person who participates in a tender. A person who has a Taxpayer's Identification Number (TIN). Candidate for Union Parishad, Paurashava, City Corporation or Parliament.

Time to Submit Income Tax Return: For Company By fifteenth day of July next following the income year or, where the fifteenth day of July falls before the expiry of six months from the end of the income year, before the expiry of such six months. For Other than Company Unless the date is extended, by the Thirtieth day of September next following the income year. Consequences of Non-Submission of Return imposition of penalty amounting to 10% of tax on last assessed income subject to a minimum of Tk. 1,000/- In case of a continuing default a further penalty of Tk. 50/- for every day of delay. Assessment Procedures: For a return submitted under normal scheme, assessment is made after hearing. For returns submitted under Universal Self Assessment Scheme, the acknowledgement slip is determined to be an assessment order. Universal Self Assessment is of course subject to audit. Appeal against the order of DCT: A taxpayer can file an appeal against DCT's order to the Commissioner (Appeals)/Additional or Joint Commissioner of Taxes (Appeals) and to the Taxes Appellate Tribunal against an Appeal order.

Tax withholding functions: In Bangladesh withholding taxes are usually termed as Tax deduction and collected at source. Under this system both private and public limited companies or any other organization specified by law are legally authorized and bound to withhold taxes at some point of making payment and deposit the same to the Government Exchequer. The taxpayer receives a certificate from the withholding authority and gets credits of tax against assessed tax on the basis of such certificate.

No.HeadsSection/RuleRateChalan inthe nameof1SalariesSection 50deduction at average rateRespectiveZone2Discount on the realvalue of BangladeshBank BillsSection 50Adeduction at normal rate ormaximum rate whichever isgreater.LTU3Interest on securitiesSection 5110%on interest or discountLTU4Supply of goods andexecution of contractsand sub-contractsSection52(Rule 16)nil up to 1 lac, 1-5 lacs(1%), 5-15 lacs (2.5%), 15-25 lacs 3.5% and 25 lacsand above (4%)Zone-2(Partly) &LTUHeads of Income Subject to deduction or collection of income tax at source with specified rates of deduction.

5Indenting commission /Shipping agencycommissionSection 52(Rule 17)3.5% of the total receipt ofindenting commission & 5%of total Shipping agencycommission receiptZone-26Royalty, Fees forprofessional or technicalservicesSection 52 A10% of the feesZone-87Stevedoring agency &Security serviceSection 52AA7.5% of the feesCtg. Zone-28C & F agencycommissionSection 52AAA7.5% of the feesZone-29Sale of bandrolls ( forbiri)Section 52B6% of the value of bandrolls.RespectiveZone10Compensation foracquisition of propertySection 52C6% of the compensationmoneyZone-211Interest on savinginstrumentsSection 52D10% of the amount ofinterest (Current rate)Zone-212Collection of tax frombrick manufacturersSection 52F1 Sec. = Tk.10,000/ for eachbrick field.1.5 Sec. = Tk.12,000/ foreach brick field.2 Sec. = Tk.18,000/ for eachbrick field.RespectiveZone13Commission on Letter ofCreditsSection 52I5% of the amount ofcommission.LTU14Issuing & Renewal oftrade licenceSection 52KTk 500/- For renewal of eachLincenceZone-315Trustee feesSection 52L10%16Frieght Forward agencyCom.Section 52M7.5%17Rental powerSection 52N4%18Import of goodsSection 53(Rule17A)3% of the value of imports.Zone-219Income from houseproperty (house rent)Section 53A(Rule17B)No deduction if monthly rentis below 20,000/-3% (if monthly rent is20,000-40,000 Tk.) and5% (if monthly rent is above40,000 Tk.)Zone-2Dha &OtheroutsideZone20Shipping business ofresidentSection 53AA5% of freightZone-2,ctg21Export of manpowerSection 53B(Rule 17C)10% of the service charges.Zone-2,dhk & ctg22Export of KnitwearSection 53BB0.25%Zone-523Member of StockExchangeSection53BBB0.015%Zone-724Export of goods exceptSection0.25%Zone-5

Knitweare & Wovengarments53BBBB25Sale of goods by publicauctionSection 53C(Rule 17D)5% of the sale priceZone-226Courier Service (Non-resident)Section 53CC7.5%Zone-627Payment to film actorsand actressesSection 53D(Rule 17E)5% of the amount paidexceedingTk. 36000/-Zone-228Cash subsidySection 53DD5%Zone-529Commission Fees ordiscount paid todistributorsSection 53E(Rule 17G)7.5% of the amount ofcommission.Zone-2 &LTU30Commission or chargespaid to the agents offoreign buyersSection 53EE4 % on the amount ofcommission or charges.Dhk.Zone-6,Ctg.Zone-3and ZoneofRespectiveDivision31Interest on bankdepositsSection 53F(Rule 17H)10% of the amount ofinterest.Zone-132Real Estate &DevelopersSection 53FFIn case of Bldg. 250 per sq.meterIn case of land 5% of deedvalueZone-533Insurance commissionSection 53G3% on the amount ofcommissionLTU34Commission paid to theSurveyors of GeneralInsurancesSection 53GG7.5% on the amount ofcommission.Dhk.Zone-2,Ctg.Zone-3and ZoneofRespectiveDivision35Transfer of propertySection 53H(Rule 17I)5% of the value of theproperty.SurveyZoneInterest on Post OfficeSavings Bank AccountSection 53INo deduction if the amountof interest does notexceeds Tk.1,50,000 and ifexceeds then 10% on theamount of interest .Zone-236Rent of vacant land,plant and machinerySection 53J(Rule 17BB)No deduction if monthly rentis below 15,000/-3% (if monthly rent is15,000 -30,000 Tk.) and5% (if monthly rent is above30,000 Tk.)Zone-2

37Advertising bill of newspaper, magazine,private televisionchannelSection 53K3% of the value of theproperty.Zone-538DividendSection 54(1) Resident individual 10%,non-resident individual 25%(2) Company 15%LTU (onlyLTUs files)all othersZone-239Income from lotterySection 5520% of the amount won.Zone-240Income of non-residentOther than non-resident Bangladeshi}Section 56Company - rate applicable tothe com. Other thancompany - maximum rate.Zone-6

Major areas for final settlement of tax liability: Tax deducted at source for the following cases is treated as final discharge of tax liabilities. No additional tax is charged or refund is allowed in the following cases: Supply or contract work Band rolls of handmade cigarettes Import of goods Transfer of properties Export of manpower Real Estate Business Export value of garments Local shipping business Royalty, technical know-how fee Insurance agent commission. Auction purchase Payment on account of survey by surveyor of a general insurance company Clearing & forwarding agency commission. Transaction by a member of a Stock Exchange. Courier business Export cash subsidy Tax Recovery System: In case of non-payment of income tax demand the following measures can be taken against a taxpayer for realization of tax: Imposition of penalty Attachment of bank accounts, salary or any other payment. Filing of Certificate case to the Special Magistrate.

Advance Payment of TaxEvery taxpayer is required to pay advance tax in four equal installments falling on 15th September; 15th December; 15th March and 15th June of each year if the latest assessed income exceeds Taka three lakh. Penalty is imposed for default in payment of any installment of advance tax.Fiscal incentives Following are fiscal incentives available to a taxpayer: a) Tax holiday: Tax holiday is allowed for industrial undertaking, tourist industry and physical infrastructure facility established between 1st July 2008 to 30th June 2011 in fulfillment of certain conditions.

Industrial Undertaking Eligible for Tax holiday: (i) An industry engaged in production of textile, textile machinery, jute goods, high value garments, pharmaceuticals, melamine, plastic products, ceramics, sanitary ware, steel from iron ore, MS Rod, CI Sheet, fertilizer, insecticide & pesticide, computer hardware, petro-chemicals, agriculture machinery, boilers, compressors, basic raw materials of drugs, chemicals and pharmaceuticals. (ii) An industry engaged in agro-processing, ship building, diamond cutting.

Physical Infrastructure Eligible for Tax holiday Sea or river port, container terminals, internal container depot, container freight station, LNG terminal and transmission line, CNG terminal and transmission line, gas pipe line, flyover, mono rail, underground rail, telecommunication other than mobile phone, large water treatment plant & supply through pipe line, waste treatment plant, solar energy plant, export processing zone.

Tourism Industry Eligible for Tax holiday Residential hotel having facility of three stars or more.

b) Accelerated depreciation Accelerated depreciation on cost of machinery is admissible for new industrial undertaking in the first year of commercial production 50%, in the second year 30% and in the third year 20%.

c) Income derived from any Small and Medium Enterprise (SME) engaged in production of any goods and having an annual turnover of not more than taka twenty four lakh is exempt from tax.

d) Industry set up in EPZ is exempt from tax for a period of 10 years from the date of commencement of commercial production.

e) Income from fishery, poultry, cattle breeding, dairy farming, horticulture, floriculture, mushroom cultivation and sericulture are exempt from tax up to 30th June, 2011, subject to investing at least 10% of the exempted income that exceeds one lakh Taka, in government bonds.

f) Income derived from export of handicrafts is exempted from tax up to 30th June, 2011.

g) An amount equal to 50% of the income derived from export business is exempted from tax.

h) Listed companies are entitled to 10% tax rebate if they declare dividend of 20% or more.

i) Income from Information Technology Enabled Services (ITES) business is exempted up to 30th June, 2011.Avoidance of Double Taxation Agreement: There are agreements on avoidance of double taxation between Bangladesh and 28 countries which are:SERIAL NONAME OF COUNTRY

01Great Britain

02Singapore

03Sweden

04Republic of Korea

05Canada

06Pakistan

07Romania

08Sri Lanka

09France

10Malaysia

11Japan

12India

13Germany

14Netherlands

15Italy

16Denmark

17China

18Belgium

19Thailand

20Poland

21Philippines

22Vietnam

23Turkey

24Norway

25USA

26Indonesia

27Switzerland

28Oman

Steps for collecting Income Tax in BangladeshSubmission of income tax returns is generally due by: 30th September in case of non-companies and 31st December in case of companies.Assessment is made in several procedures. They are: Self assessment Presumptive assessment Spot assessment Pre-audit based assessmentHowever, certain percent of self assessment cases are selected for audit.Assesses can prefer appeal if aggrieved by his assessment. There are three primary forums for appeal. They are to the Appellate Commissioner/Additional Commissioner/Joint Commissioner or to the Commission for reviews. The decisions of Appellate Commissioner/Additional Commissioner/Joint Commissioner can be challenged to the next Appellate Court named as Appellate Tribunal.Withholding tax is levy able on a number of items including contractors, imports, transfer of urban land/building, bank deposits etc.

Procedure of AssessmentGenerally the followings steps are followed in case of Assessment of the Company and the Corporation

Computation of Business IncomeStep-1

Computation of Total IncomeStep-2

Determination of Total Tax LiabilitiesDetermination of Net Tax LiabilitiesStep-4Step-3

According to Sections 28, 29 and 30 of ITO, 1984 Income from business is to be calculated after considering admissible and inadmissible expenses to this end. Total Income of the Company is to be calculated by adding other income with income from business. Total Tax liabilities are to be determining by applying prescribed tax rate. Net Tax liability is to be ascertained by deducting the following tax rebate from Total Tax liabilities: 10% Tax rebate on foreign income Tax rebate on increased production in case of industrial company, if applicable. Tax rebate on export income (at rate applicable) Tax rebate and average rate on tax free income

Problems in collection of Income TaxTendency of tax avoidance is one of the main problems while collecting Income Tax by the Income Tax Authority in Bangladesh. It is the legal utilization of the tax regime to one's own advantage, in order to reduce the amount of tax that is payable by means that are within the law. By contrast tax evasion is the general term for efforts to not pay taxes by illegal means. The term tax mitigation is a synonym for tax avoidance. Its original use was by tax advisors as an alternative to the pejorative term of tax avoidance. Latterly the term has also been used in the tax regulations of some jurisdictions to distinguish tax avoidance foreseen by the lawmakers from tax avoidance which exploits loopholes in the law. Based on these concepts arises the pillars of Tax Protesters as well as Tax ResistanceSome of those attempting not to pay tax believe that they have uncovered interpretations of the law that show that they are not subject to being taxed: these individuals and groups are sometimes called tax protesters. An unsuccessful tax protestor has been attempting openly to evade tax, while a successful one avoids tax. Tax resistance is the declared refusal to pay a tax for conscientious reasons (because the resister does not want to support the government or some of its activities). Tax resistors typically do not take the position that the tax laws are themselves illegal or do not apply to them (as tax protesters do) and they are more concerned with not paying for particular government policies that they oppose.Responses to tax avoidanceAvoidance also reduces government revenue and brings the tax system into disrepute, so governments need to prevent tax avoidance or keep it within limits. The obvious way to do this is to frame tax rules so that there is no scope for avoidance. In practice, this has not proved achievable and has led to an ongoing battle between governments amending legislation and tax advisors' finding new scope for tax avoidance in the amended rules. Tax evasionBy contrast, tax evasion is the general term for efforts by individuals, firms, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability, and includes, in particular, dishonest tax reporting (such as declaring less income, profits or gains than actually earned; or overstating deductions). Illegal income and tax evasion Who earn income by illegal means (gambling, theft, drug trafficking etc.) is required to report unlawful gains as income when filing annual tax returns. Suspected lawbreakers have therefore been charged with tax evasion when there is insufficient evidence to try them for their non-tax related crimes. Other times, tax evasion can be used as a "one more nail in the coffin" by prosecutors by stating that if a person earns illegal income, s/he may also be guilty of tax evasion. Those who attempt to report illegal income as coming from a legitimate source could be charged with money laundering.Evasion of Value Added Tax (VAT)During the latter half of the twentieth century, Value Added Tax (VAT) has emerged as a modern form of consumption tax through the world. Producers who collect VAT from the consumers may evade tax by under-reporting the amount of sales. Control of evasionLevel of evasion depends on a number of factors one of them being fiscal equation. People's tendency to evade income tax declines when the return for due payment of taxes is not obvious. Evasion also depends on the efficiency of the tax administration. Corruption by the tax officials often renders control of evasion difficult. Tax administrations resort to various means for plugging in scope of evasion and increasing the level of enforcement. Public opinion on tax avoidanceTax avoidance may be considered to be the dodging of one's duties to society, or alternatively the right of every citizen to structure one's affairs in a manner allowed by law, to pay no more tax than what is required. Attitudes vary from approval through neutrality to outright hostility. Attitudes may vary depending on the steps taken in the avoidance scheme, or the perceived unfairness of the tax being avoided. Corruption by tax officialsCorrupt tax officials cooperate with the tax payers who intend to evade taxes. When they detect an instance of evasion, they refrain from reporting in return for illegal gratification or bribe. Corruption by tax officials is a serious problem for the tax administration in a huge number of underdeveloped countries.The distinction in various jurisdictions of Tax Evasion and Tax AvoidanceThe use of the terms tax avoidance and tax evasion can vary depending on the jurisdiction. In general, the term "evasion" applies to illegal actions and "avoidance" to actions within the law. The term "mitigation" is also used in some jurisdictions to further distinguish actions within the original purpose of the relevant provision from those actions that are within the letter of the law, but do not achieve its purpose.

ConclusionThough the rate of tax revenue is to GDP is very negligible, despite the government is trying to maximize its tax revenue through different method. But the government should also remind the cannon of convenience while collecting tax from assesses. As we are living in a civilized society - should come forward to pay taxes to government in order to conduct the administrative, defense and development activities of the country. Otherwise we would not be able to prove ourselves as civilized people. Tax is the most important in the hand of the government to control the economy as well as the inflection. It also helps in push money to the economy, develop certain source of the economy and control some other activities of the economy. No Government can run its and perform administration works without collecting tax as a source of revenue. So, the Government imposes tax over the company and the corporations. On the other hand Government can also intensive to the infant and certain basic industry for protection through its tax policy.Page | 9