ANALYSIS OF THE PRACTICE OF INTERNATIONAL TAX EVASION AND AVOIDANCE

Abstract

Famously, Denis Winston Healey once said that "the thickness of a prison wall is the difference between tax avoidance and tax evasion." This article seeks to provide a quick summary of the ongoing global problem of tax evasion and avoidance. Making a quick, clear distinction between the two can be difficult since they can overlap as a result of the many tax laws that apply to different countries and are particular to each one. Additionally, it becomes challenging to identify and categorise the motives underlying tax avoidance and evasion. As a result, it is vital to compare tax avoidance and tax evasion using the present Indian Income Tax Law of 1961 as well as other international legal frameworks. A comparative analytical approach is used, and it revolves around its significance, fundamental reasons, traits, distinctions, legality, case study reports, frauds, remedies, and outcomes for the same. It is imperative to write down a fundamental overview of the tax system, which is at the mercy of these tax evaders and exploiters, because a staggering amount of money is on the line, directly affecting not only a country's income and developmental processes but also the very welfare of its residents.