Tax evasion is the deliberate refusal of a tax payer to make the correct declaration of its income or profit. The consequences of this tax evasion includes;

1. It makes it difficult for the government to carry out development projects for the growth of the economy e.g Road
2. It makes it difficult for the government to provide social services to the public e.g school, hospitals
3. Tax evasion reduces employment opportunities since the government lacks money to employ more workers
4. National income will full since tax payers contribution will be low
5. Income from taxes will be uncertain and this will affect the making of the national budget.