The evil consequence of tax evasion or avoidance are manifold which are short listed as under
1. There is substantial loss of much needed public revenue particularly in a welfare State like ours as India which is a developing Country day by day.
2. There is the serious disturbance caused to the economy of the country by the piling up of mountains of black money directly causing inflation.
3. There is “the large hidden loss” to the community by some of the best brains in the country being involved in the perpetual war waged between the tax avoider/tax evader and his expert team of advisers, lawyers and accountants on the side and the tax-gathered and his perhaps not so skillful, advisers on the other side.
4. There is the “sense of injustice and inequality which tax avoidance arouses in the breasts of those who are unwilling or unable to profit by it”; and
5. the ethics (to be precise, the lack of it) of transferring the burden of tax liability to the shoulders of the guideless, good citizens from those of the “artful doggers”.
6. The foundation of the nation is weakened by the evil tax avoiders slowly and slowly.
7. The lack of confidence remains with those people those who are tax avoiders . They remain small in thoughts and deeds always . They are not grown to the fullest in their lives.
8. This lack of confidence leads to evil consequences by not making our children prosperous and well educated and they seek means to become rich by this way or that way.
9. The higher in the tax rates prescribed by the Govt. Otherwise this can be between 15 to 20 % if there are no tax avoiders and evaders.
10. Our Govt. shall use the force and means for the prosperity of the nation if means and source is not utilized to dig tax evaders and avoiders .
