Answer:
Step-by-step explanation:
Tax evasion is the illegal act of not paying taxes that are due. In Papua New Guinea, tax evasion is a business-related crime that can be committed in a number of ways, including:Underreporting income: This is the most common form of tax evasion, and it involves deliberately reporting less income than you actually earn.Overstating expenses: This involves claiming expenses that are not actually incurred, or inflating the cost of expenses that are incurred.Shifting profits to other entities: This involves moving profits to entities that are not subject to tax in Papua New Guinea, such as offshore shell companies.Using false or misleading documents: This involves submitting documents to the Inland Revenue Commission (IRC) that are false or misleading, such as invoices or receipts.Tax evasion can have a significant negative impact on the economy of Papua New Guinea. It deprives the government of revenue that it needs to fund essential services, such as education and healthcare. It can also create an unfair playing field for businesses that do pay their taxes.