Governments throughout the world use taxation as a weapon to control and make required changes in the economic situation of the country. The governments work very hard at generating jobs and creating wealth in the country using all possible mechanisms.

Some mechanisms might create inflationary pressure on the economy though; it is believed that a little inflation is necessary in the economy for it to grow. Governments might be forced to levy different kind of progressive and regressive taxes for earning revenue which in turn is used for the development of the country and social welfare of its citizens and residents.

Tax is a burden to the tax payer. The tax payer (whether a company or an individual) is always on the hunt to avoid paying his due to the government albeit demands and expects the government to provide it with all social, infrastructure and protection benefits. This has resulted in payers coming up with different mechanisms to avoid paying taxes, though some dodge and some end up finding themselves under the evasion clause.

In the above context you are required to write a detail report on

a) Governments using tax rates to adjust the inflation in the economy.

b) Uk Tax authorities curtailing the avoidance of taxes by foreign firms not having permanent address in UK.