III.3.8 Low literacy and education
Low literacy level makes it very difficult for tax
administration to educate taxpayers about their obligations and for taxpayers
to complete the necessary forms. Many of the options available to the tax
administration to educate taxpayers, such as brochures, booklets and
information on the web become irrelevant when a large proportion of the
population is illiterate. Some unscrupulous taxpayers exploit the general low
literacy perceptions by not maintaining any business records or accounts when
in reality many of them are fully capable or literate enough to do so. RRA
needs to think of other methods to disseminate information such as running
face-to-face seminars and workshops.
III.3.9 Poor economic
development/poverty
The bottom-line is that if taxpayers are struggling to stay
alive, paying their taxes would be the last thing on their mind! They do not
see taxes as an investment that might improve their future living standards.
III.3.10
Technological developments
The rise of e-commerce and internet communication is changing
the nature of business (for example, it can involve intangible goods such as
downloadable music) and makes it even harder for tax administrations to track
and account for transactions. The deletion, hiding or encryption of electronic
records by businesses also makes it difficult for tax administrators to uncover
and follow the audit trail.
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