Lusaka, 9th July 2021: Revenue shortfalls are common for many Governments across the world. Zambia has in the recent years continued to run on deficit financing which has resulted in the accumulation of public debt. These shortfalls in revenues to meet government’s expenditure needs are caused by many factors such as low tax base that may result from the inability of an economy to generate adequate revenues from its own activities. More common also in developing countries are issues of non-compliance by entities who may either engage in tax evasion at individual or corporate level. Tax evasion is often associated with transfer pricing and given significant attention when in reference to large companies and multi- national corporations. Evading taxes however, is a practice that is wide spread even among small businesses in the country.
