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One of the most common and persistent problem for any nations is the daunting task in countering tax evasion. The tax revenue loss has serious economic consequences to the government as the government are deprived from providing adequate financing for public services, infrastructure, human capital development, best health care services and other facilities that would benefit the society. Furthermore, large tax evasion signifies that the country having large shadow economy compared to the developed world. Our focus is on the role of financial development as a vehicle to reduce tax evasion in Indonesia.

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