As we grow older, we become familiar with the word tax. When we buy something from the supermarket, we pay vat which is another form of formal tax.
On the other hand, according to your country law, if you earn a specific amount of money, you are going to pay taxes.
The fact is not only the riches pay tax, people from all spheres in a society are bound to give taxes.
It can be in a formal way of in any informal way like when you are buying internet bandwidth, you are providing tax to the government.
If you think only some rich people who earns a specific amount of money gives taxes, you must be wrong and that's a misconception.
Though the vat rules differs from country to country but the main rules remain same.You take some service and you pay tax to the country.
Now the question is what a government or a country is doing with the formal or informal taxes?
Though there should be some services like healthcare and education which should be tax free.Cause services like health care and education are categorised as humans basic needs.
But I'm quite sure in some countries people have to pay taxes for the healthcare and education they are getting directly or indirectly.
Now let's get back to the question what a government or country really do taking the taxes?
This thing simply can be defined as buy and sell theory. You are taking or enjoying some services from the country like uninterrupted electricity and in return you are paying for the service through taxes.
As a country or a government doesn't have any particular earning source so they take the money from its people as tax and than provide the services.
So to enjoy some uninterrupted good services and a good living environment we should provide the taxes.
And we shouldn't evade taxes because evading taxes means we'll no longer able to enjoy the services.
I think every good citizen around the world directly or indirectly are paying taxes.
But the number of tax evading people are not less.
Let's find out when people try to evade taxes and why?
1)A day labourer as well as a rich businessman when they are buying any services he/she also provide taxes directly or indirectly.
But in return when the country's turn to provide some good services it seems that only the rich businessman gets a better service than the day labourer.
It becomes the better class you belong to, the better service you are going to get. This discrimination creates frustration among the people specially those who belong to lower class.
In terms of taxes what should have happened?As everyone is legal citizens of that country and they pay taxes according to their capacity or earning.
So they should have enjoyed the same quality service from the country.But it never happens, countries always pay better service to the elite class and the lower remains deprived.
If the same thing ever happens to you, will you feel the same urgency to pay taxes?It doesn't matter how good citizen you are the answer will be no. And I don't think so.
2)When any country enact absurd tax laws to make the poor more poorer and to make the rich more richer.
In some country,the government tax body have some soft corner for the business owners. They seem not to take any hard action against the rich business owners.
Sometimes they enact absurd tax laws to protect those rich business owners. But the most interesting fact is, the tax body always takes strong action against small business owners and sometimes on general people.
Instead of imposing tax on the biggest business sectors, they remain very interested imposing tax on small growing businesses and on mass people.
Now look say you earn 100 USD per month and you have to provide 25 USD tax for the service you are getting. Can you call this equal treatment?
Not only the rich business owners runs the country, every single person holds the same importance. But when we are talking about taxes,the story is opposite.
3)Say "Mr.X" is a good and diligent citizen who always pays the taxes.Now what if "Mr. X's" hard earned tax money becomes black money or not used properly for the services which people demand?
Will you remain the same diligent good citizen?
This is the main reason behind tax evasion from my point of view.People generally don't want to evade taxes if they get the same equal treatment.
But when they don't get the mandatory free healthcare services or education then a question comes to their mind.
The question is are their hard earned tax money are using properly or they are being stolen by the corrupted tax body?
So people show little interest about paying taxes if these type of situation occurs.I think instead of blaming people for evading taxes, government tax bodies should emphasize on the tax laws and provide equal treatment.
Taxes are people's hard earned money so people want there money used properly and get the service they demand.
It's their right to raise their voices over any services they are paying for.