QUESTION ONE
(a) Distinguish between tax evasion and tax avoidance. ( 5
marks)
(b) The recent debate relating to importation of goods through the port of
Mombasa has had one of its issues the amount of tax assessed. Specify and
explain clearly at least three ways in which the Government may lose tax
revenue on imports. ( 6 marks)
(c) Suggest three possible ways in which the Government may prevent loss of tax
revenue from imports.
( 6 marks)
(d) Should citizens feel obliged to pay tax? Explain.
( 3 marks)
(Total: 20 marks)