Narrate any three evil consequences of tax avoidance.

The evil consequences of Tax Avoidance may be listed as under: Substantial loss of much needed public revenue particularly in welfare state like India. Serious disturbance caused to the economy of the country by piling up of black money directly causing inflation. Large hidden loss to the community by perpetual engagement of best brains in litigation. Sense of injustice and inequality which tax avoidance arouses in the breasts of those unwilling or unable to profit by it. Ethics or unethical behaviour causing burden of tax liability to good, taxpaying citizens.