“FROM TAX EVASION TO CAPITAL FLIGHT: Institutional Weakness, Parallel Economy and Policy Responses”

doi:N/A

Advances in Consumer Research

Issue 6 : 367-373

Original Article

“FROM TAX EVASION TO CAPITAL FLIGHT: Institutional Weakness, Parallel Economy and Policy Responses”

Aditya Shekhar

Elisha Lakra

Anand Singh Prakash

Ashish Pathak

⁴

Mr. Amit Kumar

Mahaveer Prasad Mali

⁵

Assistant Professor of Law, The ICFAI University, Jharkhand, India.

Assistant Professor of Law, The ICFAI University, Jharkhand, Indi

Assistant Professor of Law, The ICFAI University, Jharkhand, India

⁴

Assistant Professor of Law, Christ University, Bangalore, India

⁵

Assistant Professor of Law, NIMS School of Law, Jaipur, India

Abstract

This paper examines the interrelationship between tax evasion, capital flight and the expansion of the parallel economy, emphasizing how institutional weaknesses enable illicit financial flows. It argues that ineffective tax administration, corruption, regulatory loopholes and lack of transparency create conditions that facilitate the concealment and transfer of untaxed wealth across borders. The study analyzes the economic and governance consequences, including revenue loss, inequality and weakened public institutions. It further evaluates domestic and international policy responses, highlighting the need for stronger enforcement, digital monitoring and global cooperation. The paper concludes by proposing reforms aimed at enhancing institutional capacity and ensuring sustainable economic governance....

Keywords

Tax Evasion

Capital Flight

Parallel Economy

Institutional Weakness

Illicit Financial Flows

Governance

Policy Responses

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