|29th IBIMA Conference
3 - 4 May 2017
Account Holders Behavior on Imposition of Withholding Tax on Banking Transactions in Pakistan
Kanwal Gul, Zain Afzal Hashmi, Samran Ali, Aamir Firoz Shamsi, Babar Ansari, Liaqat Ali Bahria and Um-e-Amama Areeb Gul,
Tax evasion is a major issue for those governments where some people deliberately pay the lesser amount of tax than the government requires paying. The objective of the study is to analyze the behavior of account holder in terms of transaction pattern, when the government of Pakistan increased amount of withholding tax (0.6%) on banking transactions in 2015. An individual person or any corporate entity pay a specific amount of sum to the government in order to provide sufficient fund and finance for different government/public activities. Assumption of the study is that Income taxes in precise, are a type of activities in which working class people feel enforced to pay a specific amount of sum without perceiving any equivalent return. In Scenario of Pakistan Self-employed people and entrepreneur have more chances to hide their original income as no major documents are required to start the business. The government of Pakistan imposed withholding tax in October 2015 on bank transactions, where those account holders who fall in the NON Filer category forced registered to pay withholding tax.