Tax Evasion is a big problem in many countries, especially in developing ones like Malawi. The main reasons for Tax Evasion are high tax rates, weak tax laws, and a lack of enforcement. To combat this issue, Malawi needs to improve its tax laws and enforcement methods. This can be done by increasing penalties for evaders, expanding the types of transactions that require tax clearance, and strengthening staff capacity and abilities. Additionally, tackling the parallel economy by analyzing withholding tax and import/export records can help bring more businesses into the taxable system.