Tax Avoidance: Meaning, History & Rational

Abstract

Tax avoidance is probably the most misunderstood and misused word in the field of tax. It is reckoned that scholars, practitioners and authorities rarely use the word but highly prefer words like ‘tax cheating’ or ‘tax dodging’ or ‘escaping tax’ instead. These words are preferred mainly because of the context they are used and a general lack of understanding of the meaning and concept of tax avoidance. Tax avoidance has, and it seems, will continue to remain a thorny issue globally because of the far reaching consequences its effects has on both the developing and developed countries, though on a different scale. To grasp the weight of the consequences of what has been described as tax avoidance can be witnessed through various researches by leading organization, but non so impactful as “Stealing Africa - Why Poverty?” and “Backlight Talks: Attiya Waris” . However, it’s important that before an honest discussion over the consequences of tax avoidance is engaged, the true meaning, or what can be a globally accepted definition and description of tax avoidance is provided. This essay shall delve into the definition, meaning history and the rational of tax avoidance. This research shall also highlight steps taken by Kenya to stem tax avoidance.