A qualitative evaluation of income tax designs for the informal economies in Pakistan and Thailand

Resource Information

The work A qualitative evaluation of income tax designs for the informal economies in Pakistan and Thailand represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

A qualitative evaluation of income tax designs for the informal economies in Pakistan and Thailand

Creator

• Memon, N

Subject

• corporate income tax
• developing countries
• presumptive taxation
• shadow economy
• tax system

Language

eng

Summary

This paper is concerned with the use of appropriate presumptive income tax (PIT) designs for small business in large informal economies. As informal economies hamper income tax implementation by adversely affecting compliance behaviour, developing countries mostly rely on PIT. This paper analyses the PIT designs for small businesses in Pakistan and Thailand for their ability to tackle the informal sector. The regimes are primarily tested against their adherence to the principles of a good tax system. The findings suggest that both regimes, being turnover-based PIT designs, are difficult to enforce. In terms of efficiency and equity, the Thai PIT design is relatively better than the Pakistani PIT design for taxing the informal sector

Citation source

In: Asia-Pacific journal of taxation. - Hong Kong. - Vol. 16 (2012), no. 1 ; p. 38-65

Geographic coverage

Asia

Language note

English