Tax evasion is the activity which is practised by companies and individuals and is characterized with the evasion of paying taxes with the help of different means. Taxes are considered to be a very important and essential factor which maintains the existence of the state. Individuals, small firms, big companies and great international corporations have to pay taxes to support the life of the country and all its spheres. For example, education, health care, salaries, grants, the work of the police, fire brigades, the work of the power stations which provide people with energy and water – everything depends on taxes.
From its side, the state provides people with the possibility to work, live, enjoy themselves, use the advantages of the civilization, live in peace and security.
As a reward for these opportunities the state requires taxes. Taxes appeared already at the dawn of the human civilization when the first countries appeared. The monarchs provided their people with security and demanded payment for it in the form of taxes.
Today many people and organizations try to evade taxes with the help of the illegal means to save more money for themselves. The most common method to evade taxes is to reduce the real profit of an individual or the whole company, because the sum of the tax depends directly on the profit of the company (the higher the profit, the higher the tax). Tax evasion is considered to be a serious crime and it is punished severely.
Taxes play an important role for the development of a company, so if rich companies which work in the developing countries and report dishonestly low taxes, the process of economic grow will be extremely low, because there will be no finance supply into the local and national budget. If a student expects to prepare a successful research proposal, he should devote much time to the research of the topic and only then he can try to investigate the other points of the topic and suggest writing his own research paper on it. Before that, one should succeed in research proposal writing and prepare an interesting, informative and thought-provoking paper which will persuade the professor that the problem is worth researching.
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