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Qualitative analysis on Tax Evasion in Pakistan and
Finding Reasons behind People not preferring being
a part of ATL
A brief report submitted By
JUNAID AHMED (48923) VINESH KUMAR (50871)
HASSAM JAVED (53808) AYUSH NAND (50923)
AARON AMANAT (53467)
To FACULTY OF BUSINESS ADMINISTRATION
Mr. Muhammad Mubeen Memon
Acknowledgement “In the name of
Allah, the Most Gracious and the Most Merciful” First
and primarily we would like to thank the almighty
ALLAH and our Parents for providing us such
knowledge and strength and everything for the successful
completion of this course. We are obliged to have Mr.
Muhammad Mubeen Memon as our Faculty, who
supported us throughout our course with their patience
and vast knowledge.
Abstract
This Purpose of this report is addressing the issues people
face and they prefer to not being a part of ATL due to
some fears which are common issues in Pakistan, this
study to find out the factors which influence the peoples
who can able to pay taxes but they don’t just for sack of
fear so we tried to find the issue with help of qualitative
approach. We chose the region of Karachi, Pakistan.
Interview of 6 professionals of different fields and audio
recorded from different locations of Karachi. Findings
reviled that most of the Professionals are conscious of
their Returns means submitted according to Law but on
theother side are not willing to file Tax Return properly
due to fear of FBR Notices and other factor that can affect
their families. Research recommends that if People take
care of that matter so we can stay away from that fear
which comes from environment and it is national interest
of the nation
TABLE OF CONTENTS
1 CHAPTER: INTRODUCTION
• PROBLEM STATEMENT
• REPORT OBJECTIVE
• REPORT PURPOSE
2 CHAPTER: LITERATURE REVIEWS
• PERCEPTIONS OF FAIRNESS AND TRUST
• CORRUPTION AND LACK OF TRANSPARENCY
• INEFFICIENCIES IN TAX ADMINISTRATION
• FEAR OF AUDIT AND PENALTIES
• COMPLEXITY OF TAX SYSTEM
• LACK OF BENEFITS PERCEPTION
• CULTURAL AND SOCIAL NORMS
• COMMUNICATION AND OUTREACH EFFORTS
• ROLE OF TAX ADVISORS AND CONSULTANTS
• DIGITAL LITERACY AND E-FILING BARRIERS
3 CHAPTER: METHODOLOGY
• REPORT PURPOSE
• RESEARCH APPROACH TARGET AUDIENCE.
• SIMPLE SIZE
4 CHAPTER:DATA ANALYSIS
• DATA ANALYSIS
• THEMATIC ANALYSIS
5 CHAPTER:CONCLUSION AND
RECOMMENDATIONS
• CONCLUSION
• RECOMMENDATIONS
• REFERENCE
6 CHAPTER:INTERVIEW
• INTERVIEWS
• AUDIO INTERVIEWS
Chapter No 1
Introduction
INTRODUCTION
Tax collection is a major idea that assumes a significant part in the working of present day
economies and social orders. It is the way governments get money from people, businesses, and
other people to pay for government services and activities. Education, healthcare, infrastructure
development, national defense, and social welfare programs all rely on these revenues for
funding.
Since forever ago, tax collection has been a foundation of administration and policy
implementation, filling in as a way to reallocate riches, advance financial steadiness, and control
cultural way of behaving. Charges are collected on different types of revenue, exchanges,
property, and utilization, mirroring the assorted manners by which economies create esteem.
The tax system of a country is often comprised of various types of taxes, each with its own
specific purpose and mechanism. Some common types of taxes include income tax, which is
imposed on an individual's earnings; corporate tax, which affects businesses' profits; sales tax or
value-added tax (VAT), applied to the purchase of goods and services; property tax, based on the
value of real estate; and excise taxes, targeting specific goods like tobacco, alcohol, and gasoline.
Governments design tax policies with the intention of achieving multiple objectives. These
objectives can range from generating revenue to promoting economic growth, reducing
inequality, and influencing consumer behavior. Taxation also has a significant impact on the
overall economy by affecting investment decisions, consumer spending patterns, and the cost
structure of businesses.
Tax collection in Pakistan is a urgent part of the country's monetary construction and assumes a
huge part in producing income for the public authority to back open administrations and
improvement projects. Pakistan's tax system includes a variety of taxes on transactions,
businesses, and individuals. Pakistan's tax system comprises several types of taxes, including
income tax, sales tax, federal excise duty, customs duties, wealth tax, and property tax, among
others. These taxes are levied at different levels of government, including the federal, provincial,
and local levels.
PROBLEM STATEMENT.
The biggest problem we identified that people don’t pay taxes because There's a perception of
corruption within government agencies, including the FBR. People might fear that dealing with
the FBR could involve bribery or other unethical practices. Numerous people and organizations
need trust in the public authority's capacity to use charge incomes for public government
assistance. Corruption, poor management, and a lack of transparency can deter taxpayers from
contributing freely.
REPORT OBJECTIVE.
To figure out the effect on people groups for E-filing Tax returns.
REPORT PURPOSE.
This study aims to investigate the factors that have a significant impact on individuals' efforts to
evade taxation by avoiding the ATL List and electronically filing returns through the FBR SITE.
Chapter No 2
Literature Reviews
Literature Reviews
Tax evasion remains a persistent challenge in many economies, including Pakistan, impacting
revenue collection, social equity, and economic development. Qualitative studies aiming to
understand the underlying reasons behind tax evasion behavior provide valuable insights for
policy formulation and implementation. This literature review examines relevant literature on tax
evasion in Pakistan, with a specific focus on the factors contributing to individuals' reluctance to
be a part of the Active Taxpayer List (ATL).
1. Perceptions of Fairness and Trust:
The literature underscores the role of perceived fairness and trust in tax compliance. In the
context of Pakistan, where there have been concerns about corruption and mismanagement in
government agencies, individuals' lack of trust in the tax administration could contribute to tax
evasion. If taxpayers perceive that their contributions will not be utilized for public welfare, they
might be less inclined to participate in the ATL.
2. Corruption and Lack of Transparency:
Studies highlight that corruption within tax agencies can lead to decreased compliance. When
individuals fear that dealing with tax authorities could involve bribery or unethical practices,
they might opt for evasion. Corruption erodes the legitimacy of taxation and can discourage
individuals from participating in formal tax systems.
3. Inefficiencies in Tax Administration:
Qualitative research points to the inefficiencies within the tax administration as a contributing
factor to tax evasion. Cumbersome processes, bureaucratic hurdles, and delays in tax refunds can
frustrate taxpayers and push them towards informal economic activities. These inefficiencies
might discourage individuals from seeking ATL status.
4. Fear of Audit and Penalties:
Interviews and focus groups have indicated that the fear of audits and severe penalties deters
individuals from becoming part of the ATL. The apprehension of legal consequences and the
associated costs could lead some taxpayers to evade taxes altogether.
5. Complexity of Tax System:
Studies in Pakistan have noted that the complexity of the tax system can lead to confusion and
non-compliance. Individuals might not fully understand their tax obligations or the benefits of
ATL registration. Simplifying the registration process and offering clear guidance could
encourage more individuals to participate.
6. Lack of Benefits Perception:
Qualitative studies highlight that individuals might not perceive significant benefits from being
part of the ATL. If the advantages of ATL membership, such as access to loans or government
contracts, are not well-communicated, individuals might not see a compelling reason to register.
7. Cultural and Social Norms:
Culture and social norms play a role in tax compliance. In some cases, the societal acceptance of
tax evasion as a norm can influence individual behavior. Qualitative research can provide
insights into how these norms are established and reinforced.
8. Communication and Outreach Efforts:
Effective communication about the benefits of ATL membership can impact individuals'
decisions to comply. Qualitative analysis can shed light on the effectiveness of different
communication strategies and identify gaps in public awareness.
9. Role of Tax Advisors and Consultants:
Interviews and focus groups can reveal the influence of tax advisors and consultants on
individuals' decisions to evade taxes or avoid ATL registration. Understanding their role can
provide insights into areas for intervention.
10. Digital Literacy and E-filing Barriers:
Qualitative research can explore barriers to E-filing, which is often linked to ATL registration.
Challenges related to digital literacy, access to technology, and concerns about data security can
influence individuals' preferences for participation.
Chapter No 3
Methodology
METHODOLOGY
REPORT PURPOSE
The research is done on qualitative analysis. This research has been done on the basis of why
people avoid taxation.
RESEARCH APPROACH.
In this study, the qualitative method was used to determine the impact of people's fear of
disclosing assets for fear of heavy FBR taxes.
TARGET AUDIENCE.
Reactions for the review were gathered from field subject matter expert and experts who dealt
with issues and cognizant going to turn out to be important for ATL.
SAMPLE SIZE:
TOTAL OF 6 INTERVIEWS HAVE BEEN CONDUCTED
Chapter No 4 Data
Analysis
• Data Analysis
This chapter will explain the whole outcomes and their results in the data analysis section.
• Thematic Analysis
We conducted this research by interviewing 6 people; 2 those who aren't tax filers, 3 who file tax
through via consultant, and 1 who is a self-filer.
After interviewing them, we found that there are two major issues: People in Pakistan do not file
taxes at all or they have to file taxes through the consultant. The major issue lies in the FBR and
its complications in filing tax. 5 out of 6 interviewees said they don't understand the tax system
of FBR at all and find it very difficult to file tax through the online portal even though there are
multiple tutorials available on FBR's website. 4 out of 6 interviewees said they still would not be
able to file their tax on the IRIS portal even if there were videos or tutorials given, they think that
it is the job of a tax specialist who understands these techniques very well, and they are the ones
who should be filing even if they had to pay a few thousand every year to a consultant. 1 of the
interviewees also suggested that FBR should introduce institutions in which they should provide
day-long training on how to file tax by themselves because the videos provided by FBR are of no
use.
2nd Major issue is a lack of trust in the government. One of the interviewees said he is neither a
tax filer nor does he intend to be a tax filer in this country because of the lack of
services/facilities provided by the government, even though his father has been part of the armed
forces.
Chapter No 5
Conclusion and
Recommendations
Conclusion:
In conclusion, this qualitative analysis has shed light on the reasons behind people in Pakistan not
preferring to be a part of the Active Taxpayer List (ATL) and their fears associated with tax
evasion. The findings indicate several significant factors contributing to this issue.
Firstly, there is a prevailing lack of understanding and trust in the tax system, particularly the
procedures and complexities involved in filing taxes through the Federal Board of Revenue (FBR)
portal. Many individuals find the process daunting and believe that it requires the expertise of tax
consultants, further exacerbating their reluctance to file taxes independently.
Secondly, a sense of mistrust in the government and its ability to utilize tax revenues for public
welfare has been identified as a significant deterrent. The perception of corruption within
government agencies, including the FBR, erodes taxpayers' confidence in contributing to the
formal tax system.
To address these challenges and encourage greater participation in the ATL, several
recommendations emerge. Technical improvements, including website enhancements, user
support, and a user-friendly interface, can significantly improve the tax filing experience, making
it more accessible to a wider population.
Furthermore, it is crucial for the government to demonstrate transparency in the utilization of tax
revenues. Allocating funds to infrastructure development, education, small business support, and
social welfare programs can provide tangible benefits that resonate with taxpayers and instill a
sense of responsibility and pride in contributing to national development.
Public awareness campaigns are also essential to educate the public about the direct impact of their
tax contributions on the nation's progress, fostering a culture of tax compliance and civic
responsibility.
In conclusion, addressing these issues requires a multifaceted approach involving both technical
improvements and changes in the perception of taxation. By doing so, Pakistan can enhance tax
compliance, strengthen its formal tax system, and promote economic and social development for
the betterment of the nation.
Recommendations
Technical Improvements:
Invest in website and platform upgrades to enhance user experience and resolve glitches.
Regularly monitor the website for issues and promptly address them to ensure a smooth tax filing
process.
User Support:
Establish a dedicated customer support team to assist taxpayers with technical difficulties.
Provide clear and easily accessible contact information for users to report glitches and seek
assistance.
User-Friendly Interface:
Redesign the tax filing portal with a user-friendly interface, simplified navigation, and step-
bystep guidance to minimize errors and frustrations.
Regarding the utilization of tax revenues for national development:
Infrastructure and Education:
Allocate a significant portion of tax revenue to infrastructure development, such as roads,
healthcare facilities, and education institutions, to improve the overall quality of life and promote
economic growth.
Small Business Support:
Implement programs to support small and medium-sized enterprises (SMEs) through tax
incentives and grants, as their growth contributes significantly to employment and economic
stability.
Social Welfare Programs:
Invest in social welfare programs to address poverty, unemployment, and healthcare needs,
ensuring that the benefits of taxation are felt by all segments of society.
Public Awareness:
Launch campaigns to educate the public about how their tax contributions directly impact national
development, encouraging a sense of responsibility and pride in contributing to the country's
progress.
References
1. Alm, J., & Torgler, B. (2006). Culture differences and tax morale in the United States and
in Europe. Journal of Economic Psychology, 27(2), 224-246.
2. Bird, R. M., & Zolt, E. M. (2005). Reducing the VAT rate in Pakistan: Revenue and
welfare implications. The Pakistan Development Review, 44(1), 77-99.
3. Federal Board of Revenue. (2021). FBR's official website. https://www.fbr.gov.pk/
4. Hasseldine, J., & Li, Z. (1999). Tax compliance and social norms in China: Evidence
from survey data. Journal of International Accounting, Auditing, and Taxation, 8(1), 1-
16.
5. Martinez-Vazquez, J., & Vulovic, V. (2013). Tax morale and tax evasion in Latin
America. Public Finance Review, 41(1), 139-168.
6. Torgler, B. (2002). Speaking to theorists and searching for facts: Tax morale and tax
compliance in experiments. Journal of Economic Surveys, 16(5), 657-683
CHAPTER 6
INTERVIEWS
Interviewer Ayush Nand
Name of The Respondent Vinesh Kumar
Respondent Type Non-ATL
Age 23 Years
Education Graduation in Process
Years of E-Filing 0
Transcript in Roman English
Interviewer: Aslam O Alaikum Sir, Aap ka toh pehly Shukria k aap ny mujy interview k liye
time diya, aur aap sy guzarish yeh hai aap pehly aap apna introduction dein, aap ka naam kya ha,
Aap ki education kya hai, Aap ki source of income kya ha aur kya aap Active tax payer list ma
shaamil hain Yahan nai?
Interviewee: Walikum Salam Ayush, Thank you.
First of All mera naam toh Vinesh Kumar hai, Aur Ma Graduation Kar rha huu, Most Probably
agly year ma Graduation hojay gi. Aur Rahi Baat source of income ki humara kheti- baari ka
kaam hai Gao'n So, Us ki income aati hai, Hum yahan toh kiraay py bani lety hain yahan,
humary pas khud k bani bh hai, us ki income aati hai. And Last ma Aap ka question tha k, active
tax payer, Active tax payer ma na ma huu, Na hi meri family members ma sy koi hai, Aur jitna
mera zehan jha rha ha humary aas pas ma, Gao'n ma wahan py koi bh tax payer nai Hai.
Interviewer: Okay, Theek hai, Aap Active Tax payer ma shaamil nai hain. Us ki kya wajha ha k
Na aap shaamil ha, Na aap ki family shaamil hai, us ko thora elaborate karein?
Interviewee: Acha, Us ki ek wajha hai, Ek toh toh ma apna batao toh mujy sach ma yeh FBR tax
filing samjh ma hi nai aata, k yeh kab kis py tax lagaty, matlb bhut hi complex hai un ka system
& policies jo bh hain even jub mujy samjh nai aati ma university ma parh rha huu toh aam awaan
ko obviously nai samjh aay gi, meri family ko bh samjh nai aay gi wo toh itny parhy likhy bh nai
hain.
Interviewer: Chalien Theek hai, Abbi aap tax filer nai hain. Aap ny kah abhi k un ka system
bhut complex & policies aap ko samjh nai aha rhi, agr FBR video tutorial dy deta hai, aap ko
batata ha k aesy tax file karty hain, toh kya aap future ma tax apna file karway gy yahan nai?
Interviewee: Jee Jee, Bulkul ma kar sakta hu FBR ma register. Aur even ma toh nai balky har ksi
ko karna chy, aur FBR ko bh Chy k wo apni tax policies wagera sahee kary. Jo bh un ka tax file
karty hain, kon si category py kon sa aur kitna tax lagta hai aur kya kya faida hain tax file karny
k un ko video tutorial un ko apni websites py lagany chy, un ko saari details provide karni chy,
Awaam ko jub tak faida pata nai chaly ga, wo aesa samjhy gy humary ghar sy paisy jha rhy hain
hum kyun tax file karien Liken jub un ko faiday pata chalien yahan jo bh un ka complex system
hai us ko thora easy kar dein gy toh definitely ma toh karoon ga.
Interviewer: Theek hai, Ab aap sy aakhri swaal yeh hai k, Kya aap ko koi interesting story pata
ha FBR ki active tax payer list k baary ma yahan ko income tax file kar rha ho koi aesi story jo
aap ko pata ho, aap ny khud kia ho yahan koi relative yahan koi colleague wagera ki wo aap
share kar dein
Interviewee: Jee Bulkul ek story ha mery zehan ma. Taqreebn us ko hogy hain 10 yahan 9 saal
so aap humary relative hain, matlb dour k hain wo achi khaasi income rakhty hain matlb achy
khaasy paisy waaly hain so un k sath ek masla hua tha wo FBR ma jub tax file kar rhy thy jub
register kar rhy thy khud ko toh jo income hai na un sy ghalti sy yahan jhan buch k income kam
Likh di acha then FBR walo'n ny un ko notice bheja k bhai jo aap ki income hai jo wo toh kam
hai phr aap ko jo assets zyada kesy hai, un ki gaariyan aur un k shashky bhut thy aur yeh
bechaary pareshan hogy k yeh kya hogya then unho ny jha kar dekha apna statement. Aur us ma
un ki income kam likhi hui thi then unho ny ek lawyer hire kia and us k bad usi lawyer ny sort
out kia matlb un ka bhut masla hogya tha then jha k sahee hua hai aur us k baad aaj tak apny
lawyer sy hi tax file karwaty hain.
Interviewer Ayush Nand
Name of The Respondent Sunil Kumar
Respondent Type B (Via Consultant)
Age 44 Years
Education BE
Years of E-Filing 9 Years
Interviewer: Okay, So mera naam Ayush ha. Aur yeh interview hum us liye conduct kar rhy,
Yeh humari university ka ek project ha course jis ka naam hai Business Law and Taxation us ka
project hai Final so hum research kar rhy hain Tax k related aur us ki jo bh details hongi hum tak
hi rhein gi aur humary instructor tak tak hi rhy gi yeh ksi aur sy share nai ki jay gi.
Baaki Ab ma aap sy swaalaat karta hu, Aap sy pehly Guzarish yeh hai ek aap apna introduction
dein aap ka naam kya ha aap ki education kya hai aur aap ki source of income kya hai.
Interviewee: Mera naam Sunil kumar ha aur meny Bachelor's in electrical engineering ki hui hai
in 2003 Nawabshah sy. Aur meny recently meny K- electric sy resign kia hai December 2022 aur
aaj kal ma berozgaar hu, Job ki talaash ma hu.
Interviewer: Okay, Sunil so dosra swaal yeh ha k, Kya aap FBR ma Active tax payer list ma
shamil hain? Agr aap hain toh aap ka jo tax ha wo aap khud hi file karty hain yahan ksi
consultant k through file karty hain?
Interviewee: Jee ma tax file hu, aur har saal ma apna tax consultant k through karta huu. Kyun k
FBR ny jo diya hua ha website py file karna bhara mushkil hota ha aagy jha k stuck hojata hai,
samjh nai aata aagy kya karna ha, Kaafi video bhi dekhi liken phr bh koi faida nai hua us liye jo
ma jo tax file karta hu, wo consultant k through karta huu. Ma filer hu.
Interviewer: Aur dosra swaal yeh ha K, Aap kab sy yeh tax filer hai aur aap ny kah k aap
consultant k through tax file karty hai toh us ki fees kya hai? Aur jo aap ka consultant hai wo
lawyer ha yahan koi tax specialist hain?.
Interviewee: 2014 sy ma tax filer hu, aur mukhtalif time zones ma mukhtalif logoon ko try kia ha.
Taqreebn paisy 2000/3000 lety hain tax file karny k. Aur yeh tax specialist hain, jo yeh kaam karty
hain, accurate mujy information nai hai aur na gi meny un sy kabhi pucha ha un ku speciality k
hawaaly sy.
Interviewer: Theek ha, Aesa kya reason tha jo aap tax filer bany Q k humari jo most of the
Pakistani awaam hai wo toh non-tax filer hai. Aesa koi specific reason?, Yeh kya koi job ki
wajha sy tha, yahan phr WHT sy bacha jha sakta ha? Yahan Jesy k aap koi plot wagera car
wagera lety hain toh jo tax filer hain un py tax kam lagta ha? Aur non filer hain un py tax zyada
ha. Kya khaas wajhuhaat thi jis k bays aap tax filer bany.
Interviewee: Primary jo meny tax file kia tha wo job k hawaaly sy kia tha,2014 ma. Q k un ki
compliance karni thi k aap ko tax bharna hai aur dosra us ka faida yeh hua aagy chal k ma jo
mutual funds jo khareedta tha us ma mujy tax ka faida milta tha, wo meri pay slip ka adjustment
hoti thi. Aur dosra yeh tha k ma agr kahin investment karta hu national saving yahan ksi bh bank
ma us k profit ma bh tax kam katata hai, agr aap filer hain toh 15% aur non filer hai toh 30% us
py bh faida hua. Ghaari aur plots toh ma khareed nai sakta liken us hisaab sy bh definitely faida
hoga. Tax file karny k faida hi hain, nuqsaan toh nai hai.
Interviewer: Aur yeh batay ga k jo aap ka tax consultant ha kya wo aap ka tax bachany ma help
karta ha? Agr koi cheez li ho aur us py tax bach rha ho? Yahan jo us ny information maangi aur
aap ny usy wohi information di? Wo usi hisaab sy aap ka return file kar deta ha.
Interviewee: Jee mera jo tax ha na, consultant meri koi help nai karta tax bachany ma, khaali
fees leta hai 2/3000 bus us sy zyada meri koi help nai karta.
Interviewer: Aur yeh batay ga k Agr FBR ki traf sy video tutorials diey jaaty hain, agr aap ko
easy info di jaati ha toh aap apna tax khud file karien gy yahan phr bh aap consultant k through
file karwana chay gy?
Interviewee: Ma Samjhta hu, k income tax return file karna ek bhut technical job ha aur without
the tax consultant aap yeh fill nai kar sakty chaay kitni bh guidelines di gai hoo FBR py. Yahan
toh FBR special individual course karay, koi fees ly, koi FBR institute ka naam batay k yahan jha
k aap koi course karo tax return file k hawaly sy toh phr toh ho sakta ha baaki yeh guidelines
videos dena website py aur information dena us sy koi faida haasil nai ho rha aam aadmi ko, aur
jo aadmi guidelines haasil karta hai, FBR ki website sy tax related file karny sy aagy jha k aadmi
Phans jaata hai aur wo system aagy process nai hota matlb k. Toh behtar hoga k FBR ek din ki
training muqrar kary koi institute ka naam dy wahan aadmi jha k fees dy toh us tareeqy sy aadmi
tax return bhar sakta ha, Q k training ma aap ko purra sikhaya jaay ga k kis trah aap ko fill karna
ha kya kya peachidigyaan hai.
Interviewer: Aur mera aap sy aakhri swaal yeh ha k koi aesi interesting story aap k sath hui ho
yahan aap k jo colleagues ha yahan koi relatives wagera ma agr koi aesi intresting story ho Tax
filing k mutaliq agr wo aap share karna Chay.
Interviewee: Nai aesi koi interesting story nai hai jo ma aap ko bata sakoo income tax return k
hawaaly sy bhalky mujy toh yeh humesha mushkil hi laga hai income tax return file karna.
Thank you so much!
Interviewer Aaron Amanat
Name of The Respondent Farrukh Shahzad
Respondent Type Non-ATL
Age 30 Years
Education B.com
Years of E-Filing 0 Years
Interviewer: Hello, mera name Aaron hai, or apka bht shukriyah k apne interview k lie waqt
nikala. Yeh interview hamari university k course (Business Law and Taxation se related hai). Me
apko make sure krta hon k apki koi b information na FBR ko di jayegi or na hi kisi or maqsad k
lie istemal hogi. Apki information bss hum tk or hamare instructor tk hi rahegi.
Ayen ab hum interview ko agay bharhate hain or ap please mujhe btayen k apka name kiya hai or
apki education kiya hai or apki source of income kiya hai.
Interviewee: Thank you so much Aaron for considering me, first of all my name is Farrukh
Shahzad. Or mene B.com kiya hua hai, or meri job k hawale se yeh hai k me digital kam krta
hon, logo design, website design, digital marketing, SEO, ad campaigns wager aka kaam hai.
Interviewer: Okay Farrukh bhai, jes ek apne btaya k ap digital kaam krte hainn, logo deisgn,
website design or social media marketing wagera.. to hap btayen k ap FBR me active tax payee
hain? Or agar hain to hap apni filing khud krte hain ya phir kisi consultant se krwate hian?
Interviewee: Nhi Aaron me active tax payer nhi hun, islie me na khud filing krta hon na kisi
consultant se filing krwata hon.
Interviewer: Okay, please ab mujhe btayega k iski koi khaas wajah hai k ap active tax payer nhi
hain? Please thora elaborate kren.
Interviewee: Wajah iski khaas hai b hai or khaas nhi b hai. Wajah dekeh toh yeh hai k Pakistan
me har chiz pr already hi itna tax charge kiya jata hai, k har chiz double pricing k sth sale hoti
hai. Currently agar halat dekhen toh inflation hi itna increase hogya hai. Agar me Tax pay nhi kr
rha lkin baki toh bhtt sare log hain naa jo tax pay krte hain, uske ilawa b koi sahulat nhi milti.
Light ki load shedding, gas ki load shedding, na pani sahi se milta hai. Agar hum tax pay b kren
or faida na mile toh phir kiya zarurat hai k me tax pay krun? Jo me tax pay k lie paise zayan krun
us se acaha me apni yeh zaruraten puri krlun.
Interviewer: Jee g apki bt bikul thik hai k Pakistan me inflation bht high hogya hai, islie jo hum
tax pay krte hain uska humen koi faida nhi hota. Islie most of the people in Pakistan wo tax pay
nhi krte hain, kuch ap jesi same wajah se tax pay nhi krte or kuch ko proper guidance nhi milti.
Lakin kiya apko pta hai k agar ap tax pay krte hain toh iske apko bht faide bht hote hain missal k
toor pr, j bap koi property ya wagera buy krte hain toh tb apko km tax pay krna hota hai. Toh
agar apko proper guidance di jaye, apko proper smjhaya jaye k FBR me active tax payee hone k
kiya kiya faide hain toh kiya ap khud ko FBR k active tax payee k lie register krwaenge?
Interviewee: Aaron apki bt bilkul thik hai k active tax payee hone k bhtt faide hain, lakin agar
me active tax payee ban jata hon, or me kal ko koi property ya car buy krta hon toh mujhe kitnaa
ko tax km pay krna parega? Usually agar ap koi car import kren toh apko isk lie 300% tax pay
krna hota hai, jo k car ki price 3x increase hojati hai. Toh agar me tax pay krun toh car import tax
kitna km krdenge? Mujhe nhi lgta hai k koi faida hai Pakistan me tax pay krne ka, currently mera
toh koi plan nhi hai k me country k lie tax pay krun. Electricity k bill pr itne ziyada tax lgte hain.
Islie me tax pay nhi krunga.
Interviewer: Jee ap b apni jagah thik hain k duties itni increase hogyi hain, islie bht se log kehte
hain k active tax pay krne ka kiya faida hai, wese b government itna tax already leleti hai.
Last question hai k kia apko koi FBR se related koi b interesting story yaad hai, jo apke kisi
friend ya relative ki ho, please agar yaad hai toh do share with us.
Interviewee: Relatives ka toh bht dour ka hojata hai, hamare ghr me se mere walid saab (abu) k
sth yeh scene hua hai, walid saab mere Arm force me thy, or unka tax toh wohi se proper pay
hojata hai. Or wo Active tax payee b hain, kuch time phele hum logo ne property bnai, apko pta
hai k middle class wale kese Committee’s daal kr krte hain, toh aese hi humne apna ghr bnaya
toh hume FBR se notification agaya k apne apni income sahi show nhi ki, halanke shuru se hi sb
kuch clear hai. But still unhe 4 months court k chakar lgane pare, har document dikhaya phjir sb
clear hua. Toh khud sochen k agr government ka Ex soldier apne lie itna khawar hota hai jable
uska sb kuch clear tha, toh dekhen k hamara system kesa hai. Kbi kbar mujhe b walid k sth jana
prta tha toh islei mere b clients mujhse naraz hote thy toh yeh 4 months bhtt khawari hui.
Interviewer: Okay Thank you so much Farrukh bhai apke waqt k lie!
Interviewee: No problem Aaron, bss me yahi kahunga last me k yeh sb mere apne experience ki
wajah se mene kaha, har kisi ka alagalag point of view hota hai mera maqsad kisi ko hurt krna
nhi hai. Lakin mere samne jo hai mene uski bina pr sb kuch kaha hai. Humen na toh bahir ka visa
jldi milta hai qk hum Pakistani hain. Toh mujhe itna ziyada pay krke kiya faida hai jo me tax pay
krun. Okay Aaron Thanks again and Take care.
Interviewer Aaron Amanat
Name of The Respondent Arsalan Haider
Respondent Type B (Via Consultant)
Age 37 Years
Education Master’s in Economic and
Finance (KU)
Years of E-Filing 9 Years
Transcripted in Roman English
Interviewer: Aslam O Alaikum, mera name Aaron hai, or apka bht shukriyah k apne interview k
lie waqt nikala. Yeh interview hamari university k course (Business Law and Taxation se related
hai). Me apko make sure krta hon k apki koi b information kisi ko share nhi ki jayegi. Apki
information bss hum tk or hamare instructor tk mehdod rahegi.
Kindly ab ap mujhe apna introduction den thora k apka name kiya hai or apki education kiya hai
or apki source of income kiya hai.
Interviewee: Jee Walaikum Salam, mera name Arsalan Haider hai, or mene master’s kiya hua
hai Economic and finance me Karachi University se, or meri source of income mera property of
automobile ka business hai.
Interviewer: Bht shukriyah bhai, ab me apse kuch sawal pochunga or phela sawal hai k kiya ap
FBR k active tax pay me shamil hain? Agar ap shamil hain toh ap khud iski filing krte shain ya
kisi consultant k through iski filong krwate hain?
Interviewee: G Alhamdulilah me active tax pay me shamil hun lkin me khud filing nhi krta,
consultant k through filing krwata hon.
Interviewer: Okay, kia iski koi wajah hai k ap consultant se filing krwate hain, or ap khud q nhi
krte hain.. kiya koi khaas wajah hai? Please btayega.
Interviewee: Jee iski wajah yeh hai k consultant behtar tor pr smjhta hai k konsi chiz ko humne
show krna hai or konsi chiz ko nhi, qk FBR k bht se masleh hote hain Business point of view se ,
transaction point of view se b or profit point of view se b.
Or 2nd
yeh hai k E-filing asaan b nhi hai complicated lgta hai, hamara time bch jata hai islie me
consultant se filing krwata hon.
Interviewer: Okay sir thik hai, or ap btayen k ap kitne saalun se FBR me active tax payee hain?
Or jese k apne btaya hai k ap kisi consultant k through pay krte hain toh wo apse kitne paise
charge krta hai? Or wo koi lawyer hai ya tax specialist hai?
Interviewee: Me 2014 se tax pay kr rha hon, or consultant income tax k lawyer hain, or inke
charges different hote hain around 10k-12k.
Interviewer: Okay, ap 2014 se filing kr rhe hain, toh kia iski koi khas wajah thi k ap active tax
payee bane qk most of the people in Pakistan tax pay nhi krte hain, lakin ap 2014 se pay kr rhe
hain, konsi khaas wajah thi? Please btayega?
Interviewee: Jee abviously FBR me tax pay krne k bht faide hain, business me faida hai, car
registration me faida hai, property ki registration me faida hai, islie tax filer hona zaruri hai or
islie me b active tax filer hon. Qk company account without NTN k nhi chlta or bht se business
transaction ruk jate hain.
Interviewer: Okay sir, or mujhe btaen k apka tax filer apki madad krta hain? Agar kahin se apka
tax bach rha ho toh wo paise lekr koi mdad krta hai apki?
Interviewee: Lawyer se tax filing ka faida yeh hota hai k usko pta hota hai k konsi chizen show
krni hain or konsi nhii. Lakin mera consultant koi madad nhi krta.
Interviewer: Okay sir, agar FBR apko sikhae ka ap khud E-filing kese krskte hain, apko proper
guide kiya jaye toh kiya ap apni filing khud krenge ya phir still apne consultant se filing
krwaenge?
Interviewee: Har kam k lie har bnda apni field me mahir hota hai, humen bht si bimariyun ka
ilaaj pta hota hai lki phir b hum doctor k paas jate hain. Islie agar mujhe FBR proper guidance b
de, lkin business ki masrofiyat ki wajah se me consultant se hi filing krwaunga takay mujhse koi
galti na hojaye. Me consultant se hi krwaunga, agar chote scale ka business hai toh insaan khud
krle ga.
Interviewer: Okay mera last question hai k agar koi b interesting story ho FBR se related ya phir
apke consultant ki filing krte wqt ya kisi relative ki koi tax se related story yaad hai toh please do
share with us.
Interviewee: Nahi koi aesi story nhi hai.
Interviewer: Okay bhai, thank you so much!
Interviewee: You’re welcome (Replied on text message)
Interviewer Hassam Javed
Name of The Respondent Syed Zohaib Afaque Shah
Respondent Type B (Via Consultant)
Age 33 Years
Education Masters
Years of E-Filing 7 Years
Interviewer:
What are the reasons of e-filing your income tax returns via Consultant?
a. Government related (Development / National Duty / Trust)
b. FBR Related (Promotions / WHT deductions / Difficulty)
c. Education Related (Nature / Institute)
d. Job / Business Related
e. Any Other Factor which you think is important?
Interviewee: Mera naam syed zohaib afaque shah hai. Or mujhey e-filling mein almost 7 years
hogye hain or mein apna tax file through consultant karwata hun jokey mere family member
hain. Jese ke ap ne poocha kea p tax filling khud kiun nhin kartey or consultant se kiun karwatey
hain iske peechy bohat saari authentic wajoohaat hain jisse mein apko aga karna chahta hun
jismein se sabse ehem ye hai ke jitney bhi tax filling concultant hotey hain onhein e-filling se
related expert hotey hain or onhein knowledge hoti hai. tax pesha war afraad ko durust tareeqay
se tax goshwaron ki tayari aur jaiza lainay ki tarbiyat di jati hai. is se aap ki wapsi par ghaltion ke
khatray ko kam karne mein madad mil sakti hai, jis se audit, jrmane, ya aap ke tax ki wapsi
haasil karne mein takheer ho sakti hai . tax ke qawaneen aur shakalain mabham ho sakti hain, aur
woh aksar saal bah saal bdalty rehtay hain. tax consultants taaza tareen tax qawaneen aur zawabit
ke sath up two date rehtay hain, aap ki wapsi par ghalatiyan karne ke imkanaat ko kam karte hain
. agar aap ke paas paicheeda maali lain deen, sarmaya kaari, ya aap ki zindagi mein ahem
tabdeelian hain ( jaisay shadi, Talaq , ya waarsat ), to aik consultant tax ke maqasid ke liye un
masail par tashreef laane mein aap ki madad kar sakta hai .Tax se mutaliq mushawarat ki
khidmaat haasil karte waqt yeh note karna zaroori hai .
Interviewer: If proper guidance will be provided to you regarding e-filing of income tax return
Do you think you can manage filing your income tax return on your own? If yes, Why you are
sure, If No, explain Why?
Interviewee: NHI. Jahan taq mera khayal hai mujhey nhi lagta ke mein e-filling consultant se on
my own shift karpaounga kiunke agr mujhey proper guidance debhi de to FBR ke har saal
badaltey rules or regulation or onke portal mein changes kaafi difficult hoti hain or apne
profession, job or roz mara ki zindagi ke hisaab se mein ye sab manage nhi kar paounga. Or na
sirf ye iske peechy kch reasons bhi hai jisse mein apko aga karna chahta hun ke kiun mein khud
e-filling nhi karna chahta jese ke agar meri maali sorat e haal paicheeda hai, jis mein aamdani ke
mutadid zaraye, sarmaya kaari, ktotyan, ya bain al aqwami aamdani shaamil hai, to ho sakta hai
ke mere paas un pechidgion ko durust tareeqay se navigate karne ki mahaarat nah ho.
tax ke qawaneen saal bah saal tabdeel ho satke hain, aur pesha warana rahnumai ke baghair taaza
tareen up dates aur meri wapsi par un ke asraat ko samjhna mushkil ho sakta hai. tax jama karne
mein mukhtalif hisabaat shaamil hotay hain, agar mein tax ki tayari mein achi terhan se maahir
nah hon to ghaltion ka shikaar ho satke hain. . ghalatiyan audit, jrmane, ya tax ki ziyada adaigi ka
baais ban sakti hain .
tax jama karne mein waqt lag sakta hai, aur agar mere paas koi masroof schedule hai ya mein is
kaam ko sonpnay ko tarjeeh deta hon, to tax professional ka istemaal waqt ki bachat kar sakta
hai. tax pesha war afraad saal bhar mein meri maali sorat e haal ko behtar bananay ke liye tax ki
mansoobah bandi ke mashwaray paish kar satke hain, mumkina tor par taweel muddat mein meri
raqam ki bachat ho sakti hai.
Interviewer: Any of the Interesting story you can share with respect to Income Tax e-filing
Incident of yours or your family or your friends or your official or business colleagues.
Interviewee : HAN mera eik friend tha jiska naam DANIYAL ZAIDI tha oske sath eik incident
hwa tha jo mein apko batana chahta hun osse e-filling karte hwe 4 saal ka waqt hogya tha wo bhi
meri tarah pehle consultant se hi karwata tha to eik din osne soocha ke osse khud bhi ye process
seekhna chahiye or apna tax khud file karna chahiye tou osne apne consultant se guidance lena
shuru kardi tou waqt ke sath sath wo bohar saarey rules seekh chika tha tou osne saaara excess
khud overtake karliya tou kch waqt tak tou osse oi masla paish nhi aya prr jaise jaise FBR ki
taraf se portal mein changes or technical glitch atey tou ostime osse pareshani hoti kiunke wo
professional nhi tha tax filling ko leke tou tou wo bohat pareshan rehne laga on errors ki wajjah
se tou osse wapis consultant pe transfer karna para tou ye bhi eik reason hai ke mein kabhi khud
e-filling ko overtake kerne ka soocha hi nhi kiunke jitna kaam eik field expert samajh sakta hai
wo ap nhi.
Interviewer: Bohat bohat shukriya Syed zohaib afaque shah apka mere iss interview keliye waqt
nikalne ka mujhey is interview se bohat saari aesi batein pata chali jo mere elm mein nhi thi.
Thank you so much once again. It has been a pleasure.
Interviewer Junaid Ahmed
Name of The Respondent Aijaz Khoso
Respondent Type C- (Self E-Filer)
Age 54 Years
Company Name Moblink
Position in Company Regional Director (Sales)
Interviewer: What motivated you to start e-filing your income tax returns?
Interviewee: Well, the idea of simplifying my tax filing process and reducing the hassle of
paperwork was the primary motivation behind adopting e-filing. I had heard from colleagues and
friends about how convenient and efficient it could be, and I wanted to experience that firsthand.
Interviewer: How did you learn about income tax e-filing? Was it through education,
techsavviness, FBR information, promotional videos, or self-exploration?
Interviewee: I first came across the concept of income tax e-filing through a combination of
factors. My tech-savvy nature certainly played a role in sparking my curiosity. Additionally, the
FBR's efforts to promote e-filing were evident through their communications, and I also watched
some informative promotional videos that clarified the process further.
Interviewer: What were your expectations before starting the e-filing process?
Interviewee: Before I started e-filing, my expectations were centered around convenience and
efficiency. I hoped that e-filing would simplify the entire tax return submission process, reduce
the chances of errors, and potentially lead to faster processing and refunds.
Interviewer: What challenges did you face during the e-filing process?
Interviewee: While e-filing has its benefits, there were challenges too. Initially, understanding
the different forms and sections was a bit confusing. Also, ensuring that all my financial data was
accurate and well-organized posed a challenge.
Interviewer: How did you resolve those challenges?
Interviewee: I found solutions through a combination of researching online resources, seeking
advice from tax professionals, and utilizing the guidance provided by the FBR's online platform.
Consulting with tax experts and using step-by-step guides made the process smoother.
Interviewer: How was your experience with the FBR and IRIS portal during the e-filing
process?
Interviewee: Overall, my experience was positive. The FBR's IRIS portal was user-friendly, and
the step-by-step instructions were helpful. However, there were moments of frustration due to
occasional technical glitches and slow loading times.
Interviewer: What improvements could be made to the FBR and IRIS portal to make the e-filing
process more efficient and user-friendly?
Interviewee: The FBR could enhance the user experience by providing more detailed
explanations for each section of the forms, along with real-time assistance options. Additionally,
improving the stability and responsiveness of the portal during peak usage times would be
beneficial.
Interviewer: Have you ever faced any issues while using the FBR and IRIS portal? If yes, what
were they?
Interviewee: Yes, there were a few instances when the portal experienced downtime, causing
delays in my e-filing process. On a few occasions, the system also encountered errors while
submitting forms, which required me to start over.
Interviewer: In your opinion, what are the benefits of income tax e-filing?
Interviewee: E-filing offers several advantages, such as reduced paperwork, faster processing,
automated calculations that minimize errors, instant confirmation of submission, and the
potential for quicker refunds.
Interviewer: What are the drawbacks of income tax e-filing?
Interviewee: While e-filing is convenient, it's not without its challenges. Technical issues,
concerns about data security, and the learning curve for first-time users can be considered
drawbacks. Additionally, some individuals might still prefer the familiarity of paper filing.
Interviewer: Do you have an interesting story to share related to income tax e-filing?
Interviewee: Certainly! I recall a time when I realized I had made an error in my e-filed return
just after submission. Thankfully, the e-filing system allowed me to make amendments online,
saving me the trouble of re-submitting a physical form. It was a relief to see the flexibility of the
system in action. By addressing glitches in tax filing systems and transparently using tax
revenues for national development, we can foster a sense of ownership and cooperation among
taxpayers, ultimately strengthening the country's economic and social fabric.
AUDIO OF INTERVIEWS LINK OF GOOGLE DRIVE:
https://drive.google.com/drive/folders/1-fHBaFGsT6pW-Oarcu5LI24B6PQNenNI

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Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan

  • 1. Qualitative analysis on Tax Evasion in Pakistan and Finding Reasons behind People not preferring being a part of ATL A brief report submitted By JUNAID AHMED (48923) VINESH KUMAR (50871) HASSAM JAVED (53808) AYUSH NAND (50923) AARON AMANAT (53467) To FACULTY OF BUSINESS ADMINISTRATION Mr. Muhammad Mubeen Memon Acknowledgement “In the name of Allah, the Most Gracious and the Most Merciful” First and primarily we would like to thank the almighty ALLAH and our Parents for providing us such knowledge and strength and everything for the successful completion of this course. We are obliged to have Mr. Muhammad Mubeen Memon as our Faculty, who
  • 2. supported us throughout our course with their patience and vast knowledge. Abstract This Purpose of this report is addressing the issues people face and they prefer to not being a part of ATL due to some fears which are common issues in Pakistan, this study to find out the factors which influence the peoples who can able to pay taxes but they don’t just for sack of fear so we tried to find the issue with help of qualitative approach. We chose the region of Karachi, Pakistan. Interview of 6 professionals of different fields and audio recorded from different locations of Karachi. Findings reviled that most of the Professionals are conscious of
  • 3. their Returns means submitted according to Law but on theother side are not willing to file Tax Return properly due to fear of FBR Notices and other factor that can affect their families. Research recommends that if People take care of that matter so we can stay away from that fear which comes from environment and it is national interest of the nation TABLE OF CONTENTS 1 CHAPTER: INTRODUCTION • PROBLEM STATEMENT • REPORT OBJECTIVE • REPORT PURPOSE 2 CHAPTER: LITERATURE REVIEWS • PERCEPTIONS OF FAIRNESS AND TRUST • CORRUPTION AND LACK OF TRANSPARENCY • INEFFICIENCIES IN TAX ADMINISTRATION • FEAR OF AUDIT AND PENALTIES • COMPLEXITY OF TAX SYSTEM • LACK OF BENEFITS PERCEPTION • CULTURAL AND SOCIAL NORMS • COMMUNICATION AND OUTREACH EFFORTS • ROLE OF TAX ADVISORS AND CONSULTANTS • DIGITAL LITERACY AND E-FILING BARRIERS 3 CHAPTER: METHODOLOGY • REPORT PURPOSE
  • 4. • RESEARCH APPROACH TARGET AUDIENCE. • SIMPLE SIZE 4 CHAPTER:DATA ANALYSIS • DATA ANALYSIS • THEMATIC ANALYSIS 5 CHAPTER:CONCLUSION AND RECOMMENDATIONS • CONCLUSION • RECOMMENDATIONS • REFERENCE 6 CHAPTER:INTERVIEW • INTERVIEWS • AUDIO INTERVIEWS
  • 5. Chapter No 1 Introduction INTRODUCTION Tax collection is a major idea that assumes a significant part in the working of present day economies and social orders. It is the way governments get money from people, businesses, and other people to pay for government services and activities. Education, healthcare, infrastructure
  • 6. development, national defense, and social welfare programs all rely on these revenues for funding. Since forever ago, tax collection has been a foundation of administration and policy implementation, filling in as a way to reallocate riches, advance financial steadiness, and control cultural way of behaving. Charges are collected on different types of revenue, exchanges, property, and utilization, mirroring the assorted manners by which economies create esteem. The tax system of a country is often comprised of various types of taxes, each with its own specific purpose and mechanism. Some common types of taxes include income tax, which is imposed on an individual's earnings; corporate tax, which affects businesses' profits; sales tax or value-added tax (VAT), applied to the purchase of goods and services; property tax, based on the value of real estate; and excise taxes, targeting specific goods like tobacco, alcohol, and gasoline. Governments design tax policies with the intention of achieving multiple objectives. These objectives can range from generating revenue to promoting economic growth, reducing inequality, and influencing consumer behavior. Taxation also has a significant impact on the overall economy by affecting investment decisions, consumer spending patterns, and the cost structure of businesses. Tax collection in Pakistan is a urgent part of the country's monetary construction and assumes a huge part in producing income for the public authority to back open administrations and improvement projects. Pakistan's tax system includes a variety of taxes on transactions, businesses, and individuals. Pakistan's tax system comprises several types of taxes, including income tax, sales tax, federal excise duty, customs duties, wealth tax, and property tax, among others. These taxes are levied at different levels of government, including the federal, provincial, and local levels. PROBLEM STATEMENT. The biggest problem we identified that people don’t pay taxes because There's a perception of corruption within government agencies, including the FBR. People might fear that dealing with the FBR could involve bribery or other unethical practices. Numerous people and organizations need trust in the public authority's capacity to use charge incomes for public government assistance. Corruption, poor management, and a lack of transparency can deter taxpayers from contributing freely. REPORT OBJECTIVE. To figure out the effect on people groups for E-filing Tax returns. REPORT PURPOSE. This study aims to investigate the factors that have a significant impact on individuals' efforts to evade taxation by avoiding the ATL List and electronically filing returns through the FBR SITE.
  • 8. Literature Reviews Tax evasion remains a persistent challenge in many economies, including Pakistan, impacting revenue collection, social equity, and economic development. Qualitative studies aiming to understand the underlying reasons behind tax evasion behavior provide valuable insights for policy formulation and implementation. This literature review examines relevant literature on tax evasion in Pakistan, with a specific focus on the factors contributing to individuals' reluctance to be a part of the Active Taxpayer List (ATL). 1. Perceptions of Fairness and Trust: The literature underscores the role of perceived fairness and trust in tax compliance. In the context of Pakistan, where there have been concerns about corruption and mismanagement in government agencies, individuals' lack of trust in the tax administration could contribute to tax evasion. If taxpayers perceive that their contributions will not be utilized for public welfare, they might be less inclined to participate in the ATL. 2. Corruption and Lack of Transparency: Studies highlight that corruption within tax agencies can lead to decreased compliance. When individuals fear that dealing with tax authorities could involve bribery or unethical practices, they might opt for evasion. Corruption erodes the legitimacy of taxation and can discourage individuals from participating in formal tax systems. 3. Inefficiencies in Tax Administration: Qualitative research points to the inefficiencies within the tax administration as a contributing factor to tax evasion. Cumbersome processes, bureaucratic hurdles, and delays in tax refunds can frustrate taxpayers and push them towards informal economic activities. These inefficiencies might discourage individuals from seeking ATL status. 4. Fear of Audit and Penalties:
  • 9. Interviews and focus groups have indicated that the fear of audits and severe penalties deters individuals from becoming part of the ATL. The apprehension of legal consequences and the associated costs could lead some taxpayers to evade taxes altogether. 5. Complexity of Tax System: Studies in Pakistan have noted that the complexity of the tax system can lead to confusion and non-compliance. Individuals might not fully understand their tax obligations or the benefits of ATL registration. Simplifying the registration process and offering clear guidance could encourage more individuals to participate. 6. Lack of Benefits Perception: Qualitative studies highlight that individuals might not perceive significant benefits from being part of the ATL. If the advantages of ATL membership, such as access to loans or government contracts, are not well-communicated, individuals might not see a compelling reason to register. 7. Cultural and Social Norms: Culture and social norms play a role in tax compliance. In some cases, the societal acceptance of tax evasion as a norm can influence individual behavior. Qualitative research can provide insights into how these norms are established and reinforced. 8. Communication and Outreach Efforts: Effective communication about the benefits of ATL membership can impact individuals' decisions to comply. Qualitative analysis can shed light on the effectiveness of different communication strategies and identify gaps in public awareness. 9. Role of Tax Advisors and Consultants: Interviews and focus groups can reveal the influence of tax advisors and consultants on individuals' decisions to evade taxes or avoid ATL registration. Understanding their role can provide insights into areas for intervention. 10. Digital Literacy and E-filing Barriers:
  • 10. Qualitative research can explore barriers to E-filing, which is often linked to ATL registration. Challenges related to digital literacy, access to technology, and concerns about data security can influence individuals' preferences for participation.
  • 11. Chapter No 3 Methodology METHODOLOGY REPORT PURPOSE The research is done on qualitative analysis. This research has been done on the basis of why people avoid taxation. RESEARCH APPROACH. In this study, the qualitative method was used to determine the impact of people's fear of disclosing assets for fear of heavy FBR taxes. TARGET AUDIENCE. Reactions for the review were gathered from field subject matter expert and experts who dealt with issues and cognizant going to turn out to be important for ATL. SAMPLE SIZE:
  • 12. TOTAL OF 6 INTERVIEWS HAVE BEEN CONDUCTED Chapter No 4 Data Analysis • Data Analysis This chapter will explain the whole outcomes and their results in the data analysis section. • Thematic Analysis We conducted this research by interviewing 6 people; 2 those who aren't tax filers, 3 who file tax through via consultant, and 1 who is a self-filer.
  • 13. After interviewing them, we found that there are two major issues: People in Pakistan do not file taxes at all or they have to file taxes through the consultant. The major issue lies in the FBR and its complications in filing tax. 5 out of 6 interviewees said they don't understand the tax system of FBR at all and find it very difficult to file tax through the online portal even though there are multiple tutorials available on FBR's website. 4 out of 6 interviewees said they still would not be able to file their tax on the IRIS portal even if there were videos or tutorials given, they think that it is the job of a tax specialist who understands these techniques very well, and they are the ones who should be filing even if they had to pay a few thousand every year to a consultant. 1 of the interviewees also suggested that FBR should introduce institutions in which they should provide day-long training on how to file tax by themselves because the videos provided by FBR are of no use. 2nd Major issue is a lack of trust in the government. One of the interviewees said he is neither a tax filer nor does he intend to be a tax filer in this country because of the lack of services/facilities provided by the government, even though his father has been part of the armed forces. Chapter No 5 Conclusion and Recommendations
  • 14. Conclusion: In conclusion, this qualitative analysis has shed light on the reasons behind people in Pakistan not preferring to be a part of the Active Taxpayer List (ATL) and their fears associated with tax evasion. The findings indicate several significant factors contributing to this issue. Firstly, there is a prevailing lack of understanding and trust in the tax system, particularly the procedures and complexities involved in filing taxes through the Federal Board of Revenue (FBR) portal. Many individuals find the process daunting and believe that it requires the expertise of tax consultants, further exacerbating their reluctance to file taxes independently. Secondly, a sense of mistrust in the government and its ability to utilize tax revenues for public welfare has been identified as a significant deterrent. The perception of corruption within government agencies, including the FBR, erodes taxpayers' confidence in contributing to the formal tax system. To address these challenges and encourage greater participation in the ATL, several recommendations emerge. Technical improvements, including website enhancements, user support, and a user-friendly interface, can significantly improve the tax filing experience, making it more accessible to a wider population. Furthermore, it is crucial for the government to demonstrate transparency in the utilization of tax revenues. Allocating funds to infrastructure development, education, small business support, and social welfare programs can provide tangible benefits that resonate with taxpayers and instill a sense of responsibility and pride in contributing to national development. Public awareness campaigns are also essential to educate the public about the direct impact of their tax contributions on the nation's progress, fostering a culture of tax compliance and civic responsibility. In conclusion, addressing these issues requires a multifaceted approach involving both technical improvements and changes in the perception of taxation. By doing so, Pakistan can enhance tax compliance, strengthen its formal tax system, and promote economic and social development for the betterment of the nation.
  • 15. Recommendations Technical Improvements: Invest in website and platform upgrades to enhance user experience and resolve glitches. Regularly monitor the website for issues and promptly address them to ensure a smooth tax filing process. User Support: Establish a dedicated customer support team to assist taxpayers with technical difficulties. Provide clear and easily accessible contact information for users to report glitches and seek assistance. User-Friendly Interface: Redesign the tax filing portal with a user-friendly interface, simplified navigation, and step- bystep guidance to minimize errors and frustrations. Regarding the utilization of tax revenues for national development: Infrastructure and Education: Allocate a significant portion of tax revenue to infrastructure development, such as roads, healthcare facilities, and education institutions, to improve the overall quality of life and promote economic growth. Small Business Support: Implement programs to support small and medium-sized enterprises (SMEs) through tax incentives and grants, as their growth contributes significantly to employment and economic stability. Social Welfare Programs: Invest in social welfare programs to address poverty, unemployment, and healthcare needs, ensuring that the benefits of taxation are felt by all segments of society. Public Awareness: Launch campaigns to educate the public about how their tax contributions directly impact national development, encouraging a sense of responsibility and pride in contributing to the country's progress.
  • 16. References 1. Alm, J., & Torgler, B. (2006). Culture differences and tax morale in the United States and in Europe. Journal of Economic Psychology, 27(2), 224-246. 2. Bird, R. M., & Zolt, E. M. (2005). Reducing the VAT rate in Pakistan: Revenue and welfare implications. The Pakistan Development Review, 44(1), 77-99. 3. Federal Board of Revenue. (2021). FBR's official website. https://www.fbr.gov.pk/ 4. Hasseldine, J., & Li, Z. (1999). Tax compliance and social norms in China: Evidence from survey data. Journal of International Accounting, Auditing, and Taxation, 8(1), 1- 16. 5. Martinez-Vazquez, J., & Vulovic, V. (2013). Tax morale and tax evasion in Latin America. Public Finance Review, 41(1), 139-168. 6. Torgler, B. (2002). Speaking to theorists and searching for facts: Tax morale and tax compliance in experiments. Journal of Economic Surveys, 16(5), 657-683
  • 17. CHAPTER 6 INTERVIEWS Interviewer Ayush Nand Name of The Respondent Vinesh Kumar Respondent Type Non-ATL Age 23 Years Education Graduation in Process Years of E-Filing 0 Transcript in Roman English Interviewer: Aslam O Alaikum Sir, Aap ka toh pehly Shukria k aap ny mujy interview k liye time diya, aur aap sy guzarish yeh hai aap pehly aap apna introduction dein, aap ka naam kya ha, Aap ki education kya hai, Aap ki source of income kya ha aur kya aap Active tax payer list ma shaamil hain Yahan nai?
  • 18. Interviewee: Walikum Salam Ayush, Thank you. First of All mera naam toh Vinesh Kumar hai, Aur Ma Graduation Kar rha huu, Most Probably agly year ma Graduation hojay gi. Aur Rahi Baat source of income ki humara kheti- baari ka kaam hai Gao'n So, Us ki income aati hai, Hum yahan toh kiraay py bani lety hain yahan, humary pas khud k bani bh hai, us ki income aati hai. And Last ma Aap ka question tha k, active tax payer, Active tax payer ma na ma huu, Na hi meri family members ma sy koi hai, Aur jitna mera zehan jha rha ha humary aas pas ma, Gao'n ma wahan py koi bh tax payer nai Hai. Interviewer: Okay, Theek hai, Aap Active Tax payer ma shaamil nai hain. Us ki kya wajha ha k Na aap shaamil ha, Na aap ki family shaamil hai, us ko thora elaborate karein? Interviewee: Acha, Us ki ek wajha hai, Ek toh toh ma apna batao toh mujy sach ma yeh FBR tax filing samjh ma hi nai aata, k yeh kab kis py tax lagaty, matlb bhut hi complex hai un ka system & policies jo bh hain even jub mujy samjh nai aati ma university ma parh rha huu toh aam awaan ko obviously nai samjh aay gi, meri family ko bh samjh nai aay gi wo toh itny parhy likhy bh nai hain. Interviewer: Chalien Theek hai, Abbi aap tax filer nai hain. Aap ny kah abhi k un ka system bhut complex & policies aap ko samjh nai aha rhi, agr FBR video tutorial dy deta hai, aap ko batata ha k aesy tax file karty hain, toh kya aap future ma tax apna file karway gy yahan nai? Interviewee: Jee Jee, Bulkul ma kar sakta hu FBR ma register. Aur even ma toh nai balky har ksi ko karna chy, aur FBR ko bh Chy k wo apni tax policies wagera sahee kary. Jo bh un ka tax file karty hain, kon si category py kon sa aur kitna tax lagta hai aur kya kya faida hain tax file karny k un ko video tutorial un ko apni websites py lagany chy, un ko saari details provide karni chy, Awaam ko jub tak faida pata nai chaly ga, wo aesa samjhy gy humary ghar sy paisy jha rhy hain hum kyun tax file karien Liken jub un ko faiday pata chalien yahan jo bh un ka complex system hai us ko thora easy kar dein gy toh definitely ma toh karoon ga. Interviewer: Theek hai, Ab aap sy aakhri swaal yeh hai k, Kya aap ko koi interesting story pata ha FBR ki active tax payer list k baary ma yahan ko income tax file kar rha ho koi aesi story jo aap ko pata ho, aap ny khud kia ho yahan koi relative yahan koi colleague wagera ki wo aap share kar dein Interviewee: Jee Bulkul ek story ha mery zehan ma. Taqreebn us ko hogy hain 10 yahan 9 saal so aap humary relative hain, matlb dour k hain wo achi khaasi income rakhty hain matlb achy khaasy paisy waaly hain so un k sath ek masla hua tha wo FBR ma jub tax file kar rhy thy jub register kar rhy thy khud ko toh jo income hai na un sy ghalti sy yahan jhan buch k income kam Likh di acha then FBR walo'n ny un ko notice bheja k bhai jo aap ki income hai jo wo toh kam hai phr aap ko jo assets zyada kesy hai, un ki gaariyan aur un k shashky bhut thy aur yeh bechaary pareshan hogy k yeh kya hogya then unho ny jha kar dekha apna statement. Aur us ma un ki income kam likhi hui thi then unho ny ek lawyer hire kia and us k bad usi lawyer ny sort out kia matlb un ka bhut masla hogya tha then jha k sahee hua hai aur us k baad aaj tak apny lawyer sy hi tax file karwaty hain.
  • 19. Interviewer Ayush Nand Name of The Respondent Sunil Kumar Respondent Type B (Via Consultant) Age 44 Years Education BE Years of E-Filing 9 Years Interviewer: Okay, So mera naam Ayush ha. Aur yeh interview hum us liye conduct kar rhy, Yeh humari university ka ek project ha course jis ka naam hai Business Law and Taxation us ka project hai Final so hum research kar rhy hain Tax k related aur us ki jo bh details hongi hum tak hi rhein gi aur humary instructor tak tak hi rhy gi yeh ksi aur sy share nai ki jay gi. Baaki Ab ma aap sy swaalaat karta hu, Aap sy pehly Guzarish yeh hai ek aap apna introduction dein aap ka naam kya ha aap ki education kya hai aur aap ki source of income kya hai. Interviewee: Mera naam Sunil kumar ha aur meny Bachelor's in electrical engineering ki hui hai in 2003 Nawabshah sy. Aur meny recently meny K- electric sy resign kia hai December 2022 aur aaj kal ma berozgaar hu, Job ki talaash ma hu. Interviewer: Okay, Sunil so dosra swaal yeh ha k, Kya aap FBR ma Active tax payer list ma shamil hain? Agr aap hain toh aap ka jo tax ha wo aap khud hi file karty hain yahan ksi consultant k through file karty hain? Interviewee: Jee ma tax file hu, aur har saal ma apna tax consultant k through karta huu. Kyun k FBR ny jo diya hua ha website py file karna bhara mushkil hota ha aagy jha k stuck hojata hai, samjh nai aata aagy kya karna ha, Kaafi video bhi dekhi liken phr bh koi faida nai hua us liye jo ma jo tax file karta hu, wo consultant k through karta huu. Ma filer hu. Interviewer: Aur dosra swaal yeh ha K, Aap kab sy yeh tax filer hai aur aap ny kah k aap consultant k through tax file karty hai toh us ki fees kya hai? Aur jo aap ka consultant hai wo lawyer ha yahan koi tax specialist hain?. Interviewee: 2014 sy ma tax filer hu, aur mukhtalif time zones ma mukhtalif logoon ko try kia ha. Taqreebn paisy 2000/3000 lety hain tax file karny k. Aur yeh tax specialist hain, jo yeh kaam karty hain, accurate mujy information nai hai aur na gi meny un sy kabhi pucha ha un ku speciality k hawaaly sy.
  • 20. Interviewer: Theek ha, Aesa kya reason tha jo aap tax filer bany Q k humari jo most of the Pakistani awaam hai wo toh non-tax filer hai. Aesa koi specific reason?, Yeh kya koi job ki wajha sy tha, yahan phr WHT sy bacha jha sakta ha? Yahan Jesy k aap koi plot wagera car wagera lety hain toh jo tax filer hain un py tax kam lagta ha? Aur non filer hain un py tax zyada ha. Kya khaas wajhuhaat thi jis k bays aap tax filer bany. Interviewee: Primary jo meny tax file kia tha wo job k hawaaly sy kia tha,2014 ma. Q k un ki compliance karni thi k aap ko tax bharna hai aur dosra us ka faida yeh hua aagy chal k ma jo mutual funds jo khareedta tha us ma mujy tax ka faida milta tha, wo meri pay slip ka adjustment hoti thi. Aur dosra yeh tha k ma agr kahin investment karta hu national saving yahan ksi bh bank ma us k profit ma bh tax kam katata hai, agr aap filer hain toh 15% aur non filer hai toh 30% us py bh faida hua. Ghaari aur plots toh ma khareed nai sakta liken us hisaab sy bh definitely faida hoga. Tax file karny k faida hi hain, nuqsaan toh nai hai. Interviewer: Aur yeh batay ga k jo aap ka tax consultant ha kya wo aap ka tax bachany ma help karta ha? Agr koi cheez li ho aur us py tax bach rha ho? Yahan jo us ny information maangi aur aap ny usy wohi information di? Wo usi hisaab sy aap ka return file kar deta ha. Interviewee: Jee mera jo tax ha na, consultant meri koi help nai karta tax bachany ma, khaali fees leta hai 2/3000 bus us sy zyada meri koi help nai karta. Interviewer: Aur yeh batay ga k Agr FBR ki traf sy video tutorials diey jaaty hain, agr aap ko easy info di jaati ha toh aap apna tax khud file karien gy yahan phr bh aap consultant k through file karwana chay gy? Interviewee: Ma Samjhta hu, k income tax return file karna ek bhut technical job ha aur without the tax consultant aap yeh fill nai kar sakty chaay kitni bh guidelines di gai hoo FBR py. Yahan toh FBR special individual course karay, koi fees ly, koi FBR institute ka naam batay k yahan jha k aap koi course karo tax return file k hawaly sy toh phr toh ho sakta ha baaki yeh guidelines videos dena website py aur information dena us sy koi faida haasil nai ho rha aam aadmi ko, aur jo aadmi guidelines haasil karta hai, FBR ki website sy tax related file karny sy aagy jha k aadmi Phans jaata hai aur wo system aagy process nai hota matlb k. Toh behtar hoga k FBR ek din ki training muqrar kary koi institute ka naam dy wahan aadmi jha k fees dy toh us tareeqy sy aadmi tax return bhar sakta ha, Q k training ma aap ko purra sikhaya jaay ga k kis trah aap ko fill karna ha kya kya peachidigyaan hai. Interviewer: Aur mera aap sy aakhri swaal yeh ha k koi aesi interesting story aap k sath hui ho yahan aap k jo colleagues ha yahan koi relatives wagera ma agr koi aesi intresting story ho Tax filing k mutaliq agr wo aap share karna Chay. Interviewee: Nai aesi koi interesting story nai hai jo ma aap ko bata sakoo income tax return k hawaaly sy bhalky mujy toh yeh humesha mushkil hi laga hai income tax return file karna. Thank you so much!
  • 21. Interviewer Aaron Amanat Name of The Respondent Farrukh Shahzad Respondent Type Non-ATL Age 30 Years Education B.com Years of E-Filing 0 Years Interviewer: Hello, mera name Aaron hai, or apka bht shukriyah k apne interview k lie waqt nikala. Yeh interview hamari university k course (Business Law and Taxation se related hai). Me apko make sure krta hon k apki koi b information na FBR ko di jayegi or na hi kisi or maqsad k lie istemal hogi. Apki information bss hum tk or hamare instructor tk hi rahegi. Ayen ab hum interview ko agay bharhate hain or ap please mujhe btayen k apka name kiya hai or apki education kiya hai or apki source of income kiya hai. Interviewee: Thank you so much Aaron for considering me, first of all my name is Farrukh Shahzad. Or mene B.com kiya hua hai, or meri job k hawale se yeh hai k me digital kam krta hon, logo design, website design, digital marketing, SEO, ad campaigns wager aka kaam hai. Interviewer: Okay Farrukh bhai, jes ek apne btaya k ap digital kaam krte hainn, logo deisgn, website design or social media marketing wagera.. to hap btayen k ap FBR me active tax payee hain? Or agar hain to hap apni filing khud krte hain ya phir kisi consultant se krwate hian? Interviewee: Nhi Aaron me active tax payer nhi hun, islie me na khud filing krta hon na kisi consultant se filing krwata hon.
  • 22. Interviewer: Okay, please ab mujhe btayega k iski koi khaas wajah hai k ap active tax payer nhi hain? Please thora elaborate kren. Interviewee: Wajah iski khaas hai b hai or khaas nhi b hai. Wajah dekeh toh yeh hai k Pakistan me har chiz pr already hi itna tax charge kiya jata hai, k har chiz double pricing k sth sale hoti hai. Currently agar halat dekhen toh inflation hi itna increase hogya hai. Agar me Tax pay nhi kr rha lkin baki toh bhtt sare log hain naa jo tax pay krte hain, uske ilawa b koi sahulat nhi milti. Light ki load shedding, gas ki load shedding, na pani sahi se milta hai. Agar hum tax pay b kren or faida na mile toh phir kiya zarurat hai k me tax pay krun? Jo me tax pay k lie paise zayan krun us se acaha me apni yeh zaruraten puri krlun. Interviewer: Jee g apki bt bikul thik hai k Pakistan me inflation bht high hogya hai, islie jo hum tax pay krte hain uska humen koi faida nhi hota. Islie most of the people in Pakistan wo tax pay nhi krte hain, kuch ap jesi same wajah se tax pay nhi krte or kuch ko proper guidance nhi milti. Lakin kiya apko pta hai k agar ap tax pay krte hain toh iske apko bht faide bht hote hain missal k toor pr, j bap koi property ya wagera buy krte hain toh tb apko km tax pay krna hota hai. Toh agar apko proper guidance di jaye, apko proper smjhaya jaye k FBR me active tax payee hone k kiya kiya faide hain toh kiya ap khud ko FBR k active tax payee k lie register krwaenge? Interviewee: Aaron apki bt bilkul thik hai k active tax payee hone k bhtt faide hain, lakin agar me active tax payee ban jata hon, or me kal ko koi property ya car buy krta hon toh mujhe kitnaa ko tax km pay krna parega? Usually agar ap koi car import kren toh apko isk lie 300% tax pay krna hota hai, jo k car ki price 3x increase hojati hai. Toh agar me tax pay krun toh car import tax kitna km krdenge? Mujhe nhi lgta hai k koi faida hai Pakistan me tax pay krne ka, currently mera toh koi plan nhi hai k me country k lie tax pay krun. Electricity k bill pr itne ziyada tax lgte hain. Islie me tax pay nhi krunga. Interviewer: Jee ap b apni jagah thik hain k duties itni increase hogyi hain, islie bht se log kehte hain k active tax pay krne ka kiya faida hai, wese b government itna tax already leleti hai. Last question hai k kia apko koi FBR se related koi b interesting story yaad hai, jo apke kisi friend ya relative ki ho, please agar yaad hai toh do share with us. Interviewee: Relatives ka toh bht dour ka hojata hai, hamare ghr me se mere walid saab (abu) k sth yeh scene hua hai, walid saab mere Arm force me thy, or unka tax toh wohi se proper pay hojata hai. Or wo Active tax payee b hain, kuch time phele hum logo ne property bnai, apko pta hai k middle class wale kese Committee’s daal kr krte hain, toh aese hi humne apna ghr bnaya toh hume FBR se notification agaya k apne apni income sahi show nhi ki, halanke shuru se hi sb kuch clear hai. But still unhe 4 months court k chakar lgane pare, har document dikhaya phjir sb clear hua. Toh khud sochen k agr government ka Ex soldier apne lie itna khawar hota hai jable uska sb kuch clear tha, toh dekhen k hamara system kesa hai. Kbi kbar mujhe b walid k sth jana prta tha toh islei mere b clients mujhse naraz hote thy toh yeh 4 months bhtt khawari hui. Interviewer: Okay Thank you so much Farrukh bhai apke waqt k lie! Interviewee: No problem Aaron, bss me yahi kahunga last me k yeh sb mere apne experience ki wajah se mene kaha, har kisi ka alagalag point of view hota hai mera maqsad kisi ko hurt krna
  • 23. nhi hai. Lakin mere samne jo hai mene uski bina pr sb kuch kaha hai. Humen na toh bahir ka visa jldi milta hai qk hum Pakistani hain. Toh mujhe itna ziyada pay krke kiya faida hai jo me tax pay krun. Okay Aaron Thanks again and Take care. Interviewer Aaron Amanat Name of The Respondent Arsalan Haider Respondent Type B (Via Consultant) Age 37 Years Education Master’s in Economic and Finance (KU) Years of E-Filing 9 Years Transcripted in Roman English Interviewer: Aslam O Alaikum, mera name Aaron hai, or apka bht shukriyah k apne interview k lie waqt nikala. Yeh interview hamari university k course (Business Law and Taxation se related hai). Me apko make sure krta hon k apki koi b information kisi ko share nhi ki jayegi. Apki information bss hum tk or hamare instructor tk mehdod rahegi. Kindly ab ap mujhe apna introduction den thora k apka name kiya hai or apki education kiya hai or apki source of income kiya hai. Interviewee: Jee Walaikum Salam, mera name Arsalan Haider hai, or mene master’s kiya hua hai Economic and finance me Karachi University se, or meri source of income mera property of automobile ka business hai. Interviewer: Bht shukriyah bhai, ab me apse kuch sawal pochunga or phela sawal hai k kiya ap FBR k active tax pay me shamil hain? Agar ap shamil hain toh ap khud iski filing krte shain ya kisi consultant k through iski filong krwate hain? Interviewee: G Alhamdulilah me active tax pay me shamil hun lkin me khud filing nhi krta, consultant k through filing krwata hon. Interviewer: Okay, kia iski koi wajah hai k ap consultant se filing krwate hain, or ap khud q nhi krte hain.. kiya koi khaas wajah hai? Please btayega. Interviewee: Jee iski wajah yeh hai k consultant behtar tor pr smjhta hai k konsi chiz ko humne show krna hai or konsi chiz ko nhi, qk FBR k bht se masleh hote hain Business point of view se , transaction point of view se b or profit point of view se b. Or 2nd yeh hai k E-filing asaan b nhi hai complicated lgta hai, hamara time bch jata hai islie me consultant se filing krwata hon.
  • 24. Interviewer: Okay sir thik hai, or ap btayen k ap kitne saalun se FBR me active tax payee hain? Or jese k apne btaya hai k ap kisi consultant k through pay krte hain toh wo apse kitne paise charge krta hai? Or wo koi lawyer hai ya tax specialist hai? Interviewee: Me 2014 se tax pay kr rha hon, or consultant income tax k lawyer hain, or inke charges different hote hain around 10k-12k. Interviewer: Okay, ap 2014 se filing kr rhe hain, toh kia iski koi khas wajah thi k ap active tax payee bane qk most of the people in Pakistan tax pay nhi krte hain, lakin ap 2014 se pay kr rhe hain, konsi khaas wajah thi? Please btayega? Interviewee: Jee abviously FBR me tax pay krne k bht faide hain, business me faida hai, car registration me faida hai, property ki registration me faida hai, islie tax filer hona zaruri hai or islie me b active tax filer hon. Qk company account without NTN k nhi chlta or bht se business transaction ruk jate hain. Interviewer: Okay sir, or mujhe btaen k apka tax filer apki madad krta hain? Agar kahin se apka tax bach rha ho toh wo paise lekr koi mdad krta hai apki? Interviewee: Lawyer se tax filing ka faida yeh hota hai k usko pta hota hai k konsi chizen show krni hain or konsi nhii. Lakin mera consultant koi madad nhi krta. Interviewer: Okay sir, agar FBR apko sikhae ka ap khud E-filing kese krskte hain, apko proper guide kiya jaye toh kiya ap apni filing khud krenge ya phir still apne consultant se filing krwaenge? Interviewee: Har kam k lie har bnda apni field me mahir hota hai, humen bht si bimariyun ka ilaaj pta hota hai lki phir b hum doctor k paas jate hain. Islie agar mujhe FBR proper guidance b de, lkin business ki masrofiyat ki wajah se me consultant se hi filing krwaunga takay mujhse koi galti na hojaye. Me consultant se hi krwaunga, agar chote scale ka business hai toh insaan khud krle ga. Interviewer: Okay mera last question hai k agar koi b interesting story ho FBR se related ya phir apke consultant ki filing krte wqt ya kisi relative ki koi tax se related story yaad hai toh please do share with us. Interviewee: Nahi koi aesi story nhi hai. Interviewer: Okay bhai, thank you so much! Interviewee: You’re welcome (Replied on text message) Interviewer Hassam Javed Name of The Respondent Syed Zohaib Afaque Shah Respondent Type B (Via Consultant)
  • 25. Age 33 Years Education Masters Years of E-Filing 7 Years Interviewer: What are the reasons of e-filing your income tax returns via Consultant? a. Government related (Development / National Duty / Trust) b. FBR Related (Promotions / WHT deductions / Difficulty) c. Education Related (Nature / Institute) d. Job / Business Related e. Any Other Factor which you think is important? Interviewee: Mera naam syed zohaib afaque shah hai. Or mujhey e-filling mein almost 7 years hogye hain or mein apna tax file through consultant karwata hun jokey mere family member hain. Jese ke ap ne poocha kea p tax filling khud kiun nhin kartey or consultant se kiun karwatey hain iske peechy bohat saari authentic wajoohaat hain jisse mein apko aga karna chahta hun jismein se sabse ehem ye hai ke jitney bhi tax filling concultant hotey hain onhein e-filling se related expert hotey hain or onhein knowledge hoti hai. tax pesha war afraad ko durust tareeqay se tax goshwaron ki tayari aur jaiza lainay ki tarbiyat di jati hai. is se aap ki wapsi par ghaltion ke khatray ko kam karne mein madad mil sakti hai, jis se audit, jrmane, ya aap ke tax ki wapsi haasil karne mein takheer ho sakti hai . tax ke qawaneen aur shakalain mabham ho sakti hain, aur woh aksar saal bah saal bdalty rehtay hain. tax consultants taaza tareen tax qawaneen aur zawabit ke sath up two date rehtay hain, aap ki wapsi par ghalatiyan karne ke imkanaat ko kam karte hain . agar aap ke paas paicheeda maali lain deen, sarmaya kaari, ya aap ki zindagi mein ahem tabdeelian hain ( jaisay shadi, Talaq , ya waarsat ), to aik consultant tax ke maqasid ke liye un masail par tashreef laane mein aap ki madad kar sakta hai .Tax se mutaliq mushawarat ki khidmaat haasil karte waqt yeh note karna zaroori hai . Interviewer: If proper guidance will be provided to you regarding e-filing of income tax return Do you think you can manage filing your income tax return on your own? If yes, Why you are sure, If No, explain Why? Interviewee: NHI. Jahan taq mera khayal hai mujhey nhi lagta ke mein e-filling consultant se on my own shift karpaounga kiunke agr mujhey proper guidance debhi de to FBR ke har saal badaltey rules or regulation or onke portal mein changes kaafi difficult hoti hain or apne profession, job or roz mara ki zindagi ke hisaab se mein ye sab manage nhi kar paounga. Or na sirf ye iske peechy kch reasons bhi hai jisse mein apko aga karna chahta hun ke kiun mein khud
  • 26. e-filling nhi karna chahta jese ke agar meri maali sorat e haal paicheeda hai, jis mein aamdani ke mutadid zaraye, sarmaya kaari, ktotyan, ya bain al aqwami aamdani shaamil hai, to ho sakta hai ke mere paas un pechidgion ko durust tareeqay se navigate karne ki mahaarat nah ho. tax ke qawaneen saal bah saal tabdeel ho satke hain, aur pesha warana rahnumai ke baghair taaza tareen up dates aur meri wapsi par un ke asraat ko samjhna mushkil ho sakta hai. tax jama karne mein mukhtalif hisabaat shaamil hotay hain, agar mein tax ki tayari mein achi terhan se maahir nah hon to ghaltion ka shikaar ho satke hain. . ghalatiyan audit, jrmane, ya tax ki ziyada adaigi ka baais ban sakti hain . tax jama karne mein waqt lag sakta hai, aur agar mere paas koi masroof schedule hai ya mein is kaam ko sonpnay ko tarjeeh deta hon, to tax professional ka istemaal waqt ki bachat kar sakta hai. tax pesha war afraad saal bhar mein meri maali sorat e haal ko behtar bananay ke liye tax ki mansoobah bandi ke mashwaray paish kar satke hain, mumkina tor par taweel muddat mein meri raqam ki bachat ho sakti hai. Interviewer: Any of the Interesting story you can share with respect to Income Tax e-filing Incident of yours or your family or your friends or your official or business colleagues. Interviewee : HAN mera eik friend tha jiska naam DANIYAL ZAIDI tha oske sath eik incident hwa tha jo mein apko batana chahta hun osse e-filling karte hwe 4 saal ka waqt hogya tha wo bhi meri tarah pehle consultant se hi karwata tha to eik din osne soocha ke osse khud bhi ye process seekhna chahiye or apna tax khud file karna chahiye tou osne apne consultant se guidance lena shuru kardi tou waqt ke sath sath wo bohar saarey rules seekh chika tha tou osne saaara excess khud overtake karliya tou kch waqt tak tou osse oi masla paish nhi aya prr jaise jaise FBR ki taraf se portal mein changes or technical glitch atey tou ostime osse pareshani hoti kiunke wo professional nhi tha tax filling ko leke tou tou wo bohat pareshan rehne laga on errors ki wajjah se tou osse wapis consultant pe transfer karna para tou ye bhi eik reason hai ke mein kabhi khud e-filling ko overtake kerne ka soocha hi nhi kiunke jitna kaam eik field expert samajh sakta hai wo ap nhi. Interviewer: Bohat bohat shukriya Syed zohaib afaque shah apka mere iss interview keliye waqt nikalne ka mujhey is interview se bohat saari aesi batein pata chali jo mere elm mein nhi thi. Thank you so much once again. It has been a pleasure. Interviewer Junaid Ahmed Name of The Respondent Aijaz Khoso Respondent Type C- (Self E-Filer) Age 54 Years Company Name Moblink Position in Company Regional Director (Sales)
  • 27. Interviewer: What motivated you to start e-filing your income tax returns? Interviewee: Well, the idea of simplifying my tax filing process and reducing the hassle of paperwork was the primary motivation behind adopting e-filing. I had heard from colleagues and friends about how convenient and efficient it could be, and I wanted to experience that firsthand. Interviewer: How did you learn about income tax e-filing? Was it through education, techsavviness, FBR information, promotional videos, or self-exploration? Interviewee: I first came across the concept of income tax e-filing through a combination of factors. My tech-savvy nature certainly played a role in sparking my curiosity. Additionally, the FBR's efforts to promote e-filing were evident through their communications, and I also watched some informative promotional videos that clarified the process further. Interviewer: What were your expectations before starting the e-filing process? Interviewee: Before I started e-filing, my expectations were centered around convenience and efficiency. I hoped that e-filing would simplify the entire tax return submission process, reduce the chances of errors, and potentially lead to faster processing and refunds. Interviewer: What challenges did you face during the e-filing process? Interviewee: While e-filing has its benefits, there were challenges too. Initially, understanding the different forms and sections was a bit confusing. Also, ensuring that all my financial data was accurate and well-organized posed a challenge. Interviewer: How did you resolve those challenges? Interviewee: I found solutions through a combination of researching online resources, seeking advice from tax professionals, and utilizing the guidance provided by the FBR's online platform. Consulting with tax experts and using step-by-step guides made the process smoother. Interviewer: How was your experience with the FBR and IRIS portal during the e-filing process? Interviewee: Overall, my experience was positive. The FBR's IRIS portal was user-friendly, and the step-by-step instructions were helpful. However, there were moments of frustration due to occasional technical glitches and slow loading times. Interviewer: What improvements could be made to the FBR and IRIS portal to make the e-filing process more efficient and user-friendly? Interviewee: The FBR could enhance the user experience by providing more detailed explanations for each section of the forms, along with real-time assistance options. Additionally, improving the stability and responsiveness of the portal during peak usage times would be beneficial.
  • 28. Interviewer: Have you ever faced any issues while using the FBR and IRIS portal? If yes, what were they? Interviewee: Yes, there were a few instances when the portal experienced downtime, causing delays in my e-filing process. On a few occasions, the system also encountered errors while submitting forms, which required me to start over. Interviewer: In your opinion, what are the benefits of income tax e-filing? Interviewee: E-filing offers several advantages, such as reduced paperwork, faster processing, automated calculations that minimize errors, instant confirmation of submission, and the potential for quicker refunds. Interviewer: What are the drawbacks of income tax e-filing? Interviewee: While e-filing is convenient, it's not without its challenges. Technical issues, concerns about data security, and the learning curve for first-time users can be considered drawbacks. Additionally, some individuals might still prefer the familiarity of paper filing. Interviewer: Do you have an interesting story to share related to income tax e-filing? Interviewee: Certainly! I recall a time when I realized I had made an error in my e-filed return just after submission. Thankfully, the e-filing system allowed me to make amendments online, saving me the trouble of re-submitting a physical form. It was a relief to see the flexibility of the system in action. By addressing glitches in tax filing systems and transparently using tax revenues for national development, we can foster a sense of ownership and cooperation among taxpayers, ultimately strengthening the country's economic and social fabric. AUDIO OF INTERVIEWS LINK OF GOOGLE DRIVE: https://drive.google.com/drive/folders/1-fHBaFGsT6pW-Oarcu5LI24B6PQNenNI