Question

A government can address the issue of tax evasion by:

• A. Strengthening the legal framework and enforcement mechanisms.
• B. Reducing tax rates to encourage voluntary compliance.
• C. Offering tax amnesties to past evaders.
• D. Increasing government spending on social welfare programs without improving revenue collection.

Answer 1

Answer:

A. Strengthening the legal framework and enforcement mechanisms.

• A strong legal framework with clear penalties and effective enforcement is crucial to deterring tax evasion.