The impact of tax evasion and avoidance on the economy: a case of Harare, Zimbabwe

The twin devils (tax evasion and avoidance) are problems which seem to have defied solution, and have bedevilled the Zimbabwe tax system ever since independence. While others put the blame on the Zimbabwe Revenue Authority (ZIMRA) for not living up to expectation ever since the inception with regards to tax administration, others attribute it to the unpatriotic attitude of the taxpayers. Hence the study tries to come up with the causes, effects and the perpetrations of the twin devils and their economic and social impact. It was therefore found that tax loopholes and taxpayers interference with revenue agents through corruption and bribery are the major problems and the best way of curbing this problem is to continually train and re-train revenue officers. Also, coming up with stiffer penalties like as in developed countries such as the USA and Britain where tax evasion or tax avoidance is considered as felony and a very serious crime which carries stiffer penalties and fines.