TAX EVASION.pdf - Christian Service University College

1.1 Background to the Study
CHAPTER ONE
INTRODUCTION
Governments all over the world have used taxation as a major tool to raise revenues to fund its
objectives. For instance, leaders in centuries past have raised revenues through the imposition of
taxes to fund war expenditures. In modern times, revenues from taxes are used to provide social
infrastructure! amenities such as roads, schools, hospital and public services for the benefit of the
citizenry, attraction of foreign investment through tax holidays, discouragement of the use and
production of certain harmful products such as cigarette, hard drugs, alcoholic beverages etc. to
humans and the environment by imposing high rate of taxes.
Taxation is a major source of revenue for developing countries worldwide. A tax may be defined
as a “property to support the government, a payment exacted by legislative authority’. A tax “is
not a voluntary payment or donation, but an enforced contribution, exacted pursuant to
legislative authority” (Ambala, 2008).
In Ghana, tax plays a very important role in the development of the country. The government of
Ghana obtains 75% of its revenue from taxes to finance her numerous expenditure ( Ambala
2008). Customs excise and preventive service organization is responsible for the collection of
taxes levied on imports, exports and locally manufactured goods.