NCJ Number
121915
Journal
Journal of Law and Society Volume: 16 Issue: 4 Dated: (Winter 1989) Pages: 489-505
Date Published
1989
Length
17 pages
Annotation
Tax evasion in Pakistan is examined in detail, with emphasis on a survey of Pakistani tax officials and businesspeople demonstrating why countervailing actions to enforce compliance are often ineffective.
Abstract
The article traces the history of income tax in Pakistan, along with the social, religious, and economic influences mitigating against the payment of income tax on profits derived from agricultural production and real estate as well as tax amnesties developed by the government. Interviews with 337 Pakistani tax officials, tax lawyers, and businesspeople suggest that tax evasion is a routine part of Pakistani life and that formerly honest taxpayers have been pressured to join the tax evasion corruption in order to survive in their businesses. While some Pakistani tax officials see tax evasion as a real crime, sizeable percentages of businesspeople and tax advisors do not, although they agree that tax compliance could be improved. Pakistan's incentives for paying taxes honestly-owed are weak, while its shaming and criminal prosecution process for tax evaders are even weaker. 43 footnotes.