Reference no: EM133351745

Question

Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading, the potential penalty for tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a posibility of jail time. In general monetary fines as a deterrant are preferred to black listing of company directors, revoking business operation licences, or calling for prison time. Do you agree with this preference? Should companies that are guilty of tax evasions face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so why? Provide support and rationale for your responses.