Publication and Research, IIPM

Numerous studies conducted by Indian as well as global research outfits have shown that when the tax regime is too retrograde or repressive, the first reaction of tax payers is to evade taxes if they can. Since Indian tax officials are not saints, it is inevitable some will help tax payers avoid paying these complicated taxes. When the marginal rate of income tax was a fantastic 97%, tax avoidance too was the highest.

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Source:- IIPM Editorial, 2006