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Write some causes of tax evasion. |
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Answer» Tax evasion resulting in black money prevents the resource mobilisation efforts of the Union government. Shortage of funds distorts the implementation of developmental plans and forces the government to resort to deficit financing in case public expenditure is inelastic. Tax evasion interferes with the declared economic policies of the government by distorting saving and investment patterns and availability of resources for various sectors of the economy. |
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