Prepare a report as a guide to a Company Director whose company has been subjected to penalties by HMRC for business malpractices. This resulted in loss of revenue to the Government. The focus of the report will be on tax evasion and tax avoidance with special reference to their challenges in having an equitable tax system in the UK.

Required: On the premise that the terms of engagement have been accepted, you are required to prepare your report for Management to consider at the next meeting with focus on the areas of concern highlighted below.

a) What is the difference between tax evasion and tax avoidance, highlight THREE examples of each case (8 Marks)

b) Proffer solutions to the problem of tax evasion and tax avoidance (8 Marks)

c) What are your views on anti-avoidance legislation in UK (4 Marks)