The difference between tax planning and tax avoidance is the thickness of a prison wall. That is a quote attributed to Denis Healey, a former Chancellor of the Exchequer speaking sometime when aggressive tax avoidance was still fashionable. Tax revenues are central to any government and it is easy to see why tax evasion has taken centre stage today. Sample this: Rwanda Revenue Authority exceeded its 2016/17 revenue collection target while Tanzania Revenue Authority marginally missed its target. Kenya Revenue Authority missed its target by an eye lash wide margin. Such sterling performances viewed against ever increasing tax revenue targets bring to the fore the debate on tax avoidance, a pet topic of the European Union (EU) as it turns up the heat on the “fight against tax evasion and avoidance, which are the cause of a major shortfall in tax revenues.”
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