Implementing root cause analysis techniques to examine tax evasion

Tax evasion occurs when people fail to pay their taxes. In order to meet the government’s obligations in defence, education, public health, law & justice, infrastructure and other areas of public concern. Tax evasion is a serious social-economic problem in all societies around the world, regardless of tax structure or economic progress. Tax evasion is a serious financial crime when individuals and businesses defraud the government of funds to benefit the people, therefore distorting the entire social, political, and economic system. As a result, several international organisations and governments have revised their tax rules and tax structures. This paper investigates the causes of tax evasion and proposed solutions to lessen the problem. Root Cause Analysis (RCA) is used in various phases of analysis to address this issue. The report proposes that officials in charge of economic policy and tax administration pay more attention to the tax evasion phenomenon in order to reduce tax evasion. It emphasises the importance of tax awareness by illustrating the negative impacts of tax evasion on the country and the citizens. To sum up, this study employs root cause analysis approaches to gather data that may be used by tax authorities, governments, and citizens to reduce tax evasion and its impact on economic variables, therefore increasing economic stability.