Question

RESEARCH LITERATURE REVIEW.

1. THE EFFECTS OF TAX EVASION ON ECONOMIC GROWTH IN NAMIBIA.

NB. PLEASE PROVIDE A COMPREHENSIVE LITERATURE REVIEW BASED ON THE ABOVE TOPIC, ONE FULL PAGE REVIEW WITH REFERENCE INCLUDING CITATIONS AS PER THE APA REFERNCE STYLE.

Answer 1

Tax is the primary source of revenue for any Government in each and every part of the world. Taxes are generally collected from the citizens of a country to use the same for the development and progress of the country. Government must have an effective mechanism to impose and collect taxes from its citizens with utmost efficiency and effectiveness. A country which does not have a proper system to collect taxes from its people will find it difficult to take the country forward on the path of development and progress. The economic activities and growth of a country is also fuelled to a large extent by the ability of a county to collect taxes and use it for the development and progress of the country. Taxes are used to build infrastructure of a country that fuels the economic growth in the country. Without a proper infrastructure a country will struggle push for economic growth and progress. Namibia for long been one of the African countries to have suffered from the in effective tax system and structure that have led to many people using the loopholes in te tax structure to evade payment of taxes. As a result the country has struggle to push its economic growth and is still struggling to provide its citizens with proper infrastructure to develop and build a suitable nation for business and economic growth (McNabb and LeMay-Boucher 2014).

Namibia lacks an effective tax administration that has helped its people to avoid payment of justified and proper taxes. Due to lack of taxes the Government has struggled to improve the infrastructure of the country. As a result the economic development and growth of the country is far from the inherent ability of the country. The country lacks a basic infrastructure for businesses to grow. In fact not much foreign investment has also been made in the country due to the lack f infrastructure within the country. These are primarily due to the fact that the country has been unable to collect proper taxes from its citizens to develop proper infrastructure for business and economic growth. The Government must have a proper tax law and administration to implement the tax law to collect proper taxes from its citizens to improve the infrastructure and economic growth in the country (Fankhauser and Jotzo 2018).

References:

Fankhauser, S. and Jotzo, F., 2018. Economic growth and development with low‐carbon energy. Wiley Interdisciplinary Reviews: Climate Change, 9(1), p.e495.              

McNabb, K. and LeMay-Boucher, P., 2014. Tax structures, economic growth and development.