Business Research Method

o Topic: Cause of low pay tax behavior in Pakistan o Problem:

In which the problem is that What are Cause of low pay tax behavior in Pakistan

o Introduction:
The federal government of the United States obtains most of its revenues from income taxes on individuals and corporations. Social insurance taxes help pay for government programs that benefit the poor, the elderly, the unemployed, and the disabled. Taxation, system of raising money to finance government. All governments require payments of money tax from people. Governments use tax revenues to pay soldiers and police, to build dams and roads, to operate schools and hospitals, to provide food to the poor and medical care to the elderly, and for hundreds of other purposes. Without taxes to fund its activities, government could not exist. Throughout history, people have debated the amount and kinds of taxes that a government should impose, as well as how it should distribute the burden of those taxes across society. Unpopular taxes have caused public protests, riots, and even revolutions. In political campaigns, candidates views on taxation may partly determine their popularity with voters. Taxation is the most important source of revenues for modern governments, typically accounting for 90 percent or more of their income. The remainder of government revenue comes from borrowing and from charging fees for services. Countries differ considerably in the amount of taxes they collect. In the United States, about 30 percent of the gross domestic product (GDP), a measure of economic output, went for tax payments in 2000. The 30 percent figure is relatively low from a historical standpoint. As a result of a new round of tax cuts in 2003, the tax percentage share of GDP was expected to be lower than at any time since 1959 when many major government programs, such as Medicare and Medicaid, did not exist. In Canada about 35 percent of the countrys gross domestic product goes for taxes. In France the figure is 45 percent, and in Sweden it is 51 percent.

You might think that taxes are a necessary evil better left for professionals, but understanding the basics can help you minimize the total amount of taxes that you pay. When planning for taxes, we usually think of the Federal filing deadline of April 15, however, you are required to pay taxes throughout the year. Paying the right amounts throughout the year will save you from having to pay penalty charges for underpayments. For most of us, the payments we make throughout the year are made on our behalf through our employers. Employers automatically withhold taxes from our gross earnings before giving us our net earnings, the little numbers on our paychecks (or big numbers for you lucky ones). Your employer is also responsible for reporting your total income and taxes paid by submitting form W-2 to the IRS. You must then file your taxes-which tells you the total amount of taxes owed and the total amount of taxes already paid-and either pay the difference (if your automatic deductions were too small) or collect the difference (if your automatic deductions were too big). Throughout the year, there are important tips to follow in order to prepare for your taxes. First of all, get organized. Experts recommend the use of personal finance software to enter and maintain accurate records. Keep records of expenses such as automobile mileage incurred for business purposes and get receipts for charitable contributions. It is also very important that you maintain accurate records of the purchasing and selling of stock as well as stock options. You may have heard before that you should contribute the maximum to your 401(k) retirement plan. Doing so will let you defer the taxes you pay on your contributions and will allow your contributions to increase through compound interest. Adjust your withholdings if your marital status changes or if you are in a different tax bracket than the previous year. If sufficient taxes are not withheld from your paychecks, or if you are self-employed, make estimated tax payments to the appropriate tax authority to avoid year-end penalties. Make contributions to your IRA as early as possible in the year due to the benefits of compound interest . Also, consider tax-efficient investments such as tax-free municipal bonds or taxefficient mutual funds A UK company will be subject to UK corporation tax on its income profits and capital profits. The main rate of corporation tax (for profits over 1.5 million) is currently 24%, but will reduce 1% each year until it reaches 22% from April 2014. Companies with profits up to 300,000 pay corporation tax at the small profits rate which is currently 20%. Companies with profits between 300,000 and 1,500,000 (the lower and upper limits) benefit from marginal relief from the main rate of corporation tax. Marginal relief has the effect of gradually increasing the rate of tax for a company as its profits move from the lower to the upper profits limit.

Corporation tax is paid nine months after the end of the accounting period, or, for companies with profits of more than 1.5 million, in four equal instalments, due in the seventh and tenth months of the current accounting period and the first and fourth months after the end of the accounting period. For tax purposes, trading profits are calculated by deducting from the trading receipts specified deductions together with any expenses incurred wholly and exclusively for the purposes of the trade.

Purpose & Reasoning:

A tax benefit is an allowable deduction on a tax return intended to reduce a taxpayer's burden while typically supporting certain types of commercial activity. A tax benefit allows some type of adjustment benefiting a taxpayer's tax liability. Tax benefits provide an advantage to the taxpayer while typically benefiting another entity. An example of a tax benefit is an energy tax credit; taxpayers can qualify for certain tax credits for installing energy efficient systems in their homes, which benefits the environment while reducing the demand for fuel. Quite often tax benefits may be only available for a certain time period or tax year Taxes are most often levied as a percentage, called the tax rate. An important distinction when talking about tax rates is to distinguish between the marginal rate and the effective (average) rate. The effective rate is the total tax paid divided by the total amount the tax is paid on, while the marginal rate is the rate paid on the next dollar of income earned. For example, if income is taxed on a formula of 5% from $0 up to $50,000, 10% from $50,000 to $100,000, and 15% over $100,000, a tax payer with income of $175,000 would pay a total of $18,750 in taxes Gap means small cracks. In SAP world or in Information Technology world, gap analysis is the study of the differences between two different information systems or applications( ex; existing system or legacy system with Client and new is SAP), often for the purpose of determining how to get from one state to a new state. A gap is sometimes spoken of as "the space between where we are and where we want to be." Gap Analysis is undertaken as a means of bridging that space. Actual Gap Analysis is time consuming and it plays vital role in Business Blueprint [AS IS Process] stage. A through Gap Analysis will identify the gaps between how the business operates and its needs against what the package can can't do. For each gap there will be one of three outcomes which must be recorded and auctioned The act of corrupting or making putrid, or state of being corrupt or putrid; decomposition or disorganization, in the process of putrefaction; putrefaction; deterioration. The product of corruption; putrid matter. The act of corrupting or of impairing integrity, virtue, or moral principle; the state of being corrupted or debased; loss of purity or integrity; depravity; wickedness; impurity; bribery. The act of changing, or of being changed, for the worse; departure from what is pure, simple, or correct; as, a corruption of style; corruption in language

Topic:

Cause of low pay tax behavior in Pakistan

Understanding the compliance behavior of Malaysian individual tax payer using mixed method approach
Summary
In this article find a mix method that was conducted to the investigate impact of self-assessment on the competence behavior to tax payer in Malaysia. This change was uncertain given inconclusive evidence on the effect of self-assessment.the introduction of a positive influnceon on behavior tax payer were found sensitive tax audid.The financial constraints found have a more direct stronger influence the behavior of self employee taxpayer paying tax only affect salary and wages and taxpayer. Journal of Australasian tax teacher association vol.4 no 1 2009

The modern industrial revelation exit and the failure of internal control system
In this article since 1973 world wide economic force have been changing the fashion comparable during the nineteenth century industrial revolation.we are experiencing declining cost, increasing the productivity of labor reduced the rate of labor income excess capacity the requirements for downsizing and the control system have to deal effectively change especially the requirement for the major challenge of firm and political system as continue to work way through the world wide economy.

How big are tax benefits of debt?

In this article under the specific benefit function to estimate that the capitalized tax benefit to equal 9.7percentfirm value or as 4.3 percent of tax .the tax benefit to decline to aggressively a firm uses by the shape of tax benefit. The paradoxically large liquied,profitable low expected distress use benefit conservatively .the product of key factor low assets collateral and planning for future lead to conservative debt usage. Journal of finance vol.lv no5, 2000

Why is cooperate tax rate lower than the personal tax rate the rate of new firm

In this article OECD countries statutory corporate the tax rate are lower personal income tax rate .this rate is particularly large and small firm,the reduction of the tax rate is a tax policy .the problem of information between firm and capital market .the personal tax rate below encourage and the exercise use of debt finance information it is according to traditional view cooperate view of taxation and finance .

Taxation policies low income countries

In this article tax system in the developing countries and emphasis the low income countries have followed the IMT of the world wide bank .they are the justified the theory and particle constrain the low income countries the reason of tax reformative of given but the provides little support for the tax neutrality recommended for developing countries they are also economy argument tax non uniformity

Redistributive effect personal income taxation in Pakistan

In this article redistribution effect of income tax in Pakistan .overall tax system in order to evaluate the rate allowance deduction exemption .the structure given in income tax obedience 2001 household income in 2002 low growth year and 2005 high growth year. the redistributed effect tax assessment .the taxpayer contribute most progressively .this is the country with advance taxation system allowance followed by tax rate. Pakistan economic and social review vole 47,no 1,2009 1-17

Taxpayer response to increased probality audit evidence from a controlled experiment in Minnesota
In this article in 1995 a group of randomly selected taxpayer was informed by the letter and return to file would be closely examined .a group did not receive this letter and the low and middle income of taxpayer in the group on increase the tax payment to the previous year .we interpret as indicate the presence of noncompliance .the effect we much strong with more opportunity /the difference is not statistically significant do not self employment income and not pay estimate tax. Elsevier journal of public 79(2001)455-483

Tax structure an economic growth

In this article the work predict the high corporate tax rate to decrease economy growth rate. the personal high tax rate clear in this paper .the tax policies in affect a country growth rate .we find the tax rate are significantly negatively correlated difference in overage economy growth .the controlling for other determinants of economy growth in fixed effect regression then again finding corporate tax rate with in countries. Elsevier journal of public 89(2005)1027-1043

Methodology:

Paradigm:
In which use the positivism research paradigm is that to verify the theory and determine the data. The world is external and objective. In which to verify the theory and also deduction methods use for the data.

Research approach:
This process utilizes detailed questionnaires often distributed to large numbers of people. Questions are typically multiple choice and participants choose the most appropriate response among those listed for each question. Quantitative research collects a huge amount of data, which can often be generalized to a larger population and allow for direct comparisons between two or more groups. It also provides statisticians with a great deal of flexibility in analyzing the results.

Population & Sample:

In defining a population for study, such a population must be specific enough to provide readers a clear understanding of the applicability of your study to their particular situation and their understanding of that same population. The question being asked is intimately related to the selection of a sample that can provide the answer, and to the size of the sample needed to answer the question. In which the 100 questionnaires that can be required for this study and research method and also our respondents are customer,

Instrument:
In which we use the instrument is that to make a close ended question for the collect data and gain the more information about our problem.

 Data Analysis:
Descriptive statistics include the numbers, tables, charts, and graphs used to describe, organize, summarize, and present raw data. Statistical technique is determined by the research design, hypothesis, and the data collected. And also the use numerical data analysis in SPSS software for descriptive data. The quantitative approach to research involves statistical analysis based on numerical evidence; this is then used to draw conclusions.

Main Objectives:
To identify the Cause of low pay tax behavior in Pakistan

o Sub Objectives:
To determine the relationship between Causes of low taxpayers and Unawareness of taxpayers To determine the relationship between Causes of low taxpayers and Gaps in the existing system To determine the relationship between Causes of low taxpayers and High tax rate To determine the relationship between Causes of low taxpayers and System Failure To determine the relationship between Causes of low taxpayers and Tax Benefit To determine the relationship between Causes of low taxpayers and corruption

Significance:
The basic objective of this study is to enhance the knowledge of the student The policy maker can improve the old policy by reading this research They do this by creating ideas, unique concepts, and messages, to make the positive and memorable. .

THEORETICAL FRAMEWORK:

Unawareness of taxpayers

Gaps in the existing system

High tax rate Causes of low taxpayers behavior System Failure

Tax Benefit

corruption

H1: There is relationship between Causes of low taxpayers and Unawareness of taxpayers Ho: There is no relationship between Causes of low taxpayers and Unawareness of taxpayers H2: There is relationship between Causes of low taxpayers and Gaps in the existing system Ho: There is no relationship between Causes of low taxpayers and Gaps in the existing system H3: There is relationship between Causes of low taxpayers and High tax rate Ho: There is no relationship between Causes of low taxpayers and High tax rate H4: There is relationship between Causes of low taxpayers and Tax Benefit Ho: There is no relationship between Causes of low taxpayers and Tax Benefit H5: There is relationship between Causes of low taxpayers and corruption Ho: There is no relationship between. Causes of low taxpayers and corruption

H6: Ho:

There is relationship between Causes of low taxpayers and System Failure There is no relationship between Causes of low taxpayers and System Failure

Limitation:
In this research, the researcher examined factors responsible for banking preference of the quality service to customers satisfaction, and we collect the data in whole Lahore and also collect the data for student and relevant person. So it is the limitation and we cannot the collect the data out of the Lahore.

o Reference list:
http://taxation5.blogspot.com/2008/11/i-introduction-to-taxation.html http://www.investorguide.com/igu-article-852-tax-basics-introduction-to-taxes-and-basicinformation.html http://sudhakargadila.blogspot.com/2012/04/gap-analysis-definition.html http://en.wikipedia.org/wiki/Tax www.brainyquote.com/words/co/corruption148524.htm
http://www.investopedia.com/terms/t/tax-benefit.asp#ixzz1z3xeBrcj

http://www.brainyquote.com/words/co/corruption148524.html#OkrobFsppslyMAZO.99 Elsevier journal of public 89(2005)1027-1043 Elsevier journal of public 79(2001)455-483 Pakistan economic and social review vole 47,no 1,2009 1-17 Journal of finance vol.lv no5, 2000 Journal of Australasian tax teacher association vol.4 no 1 2009