Sec E Taxation Assignment 3 M.

Fahad
B.Sc. 3 18u00151

Government has made laws that every person earning taxable income should pay taxes. Almost
everyone is not happy paying taxes, they pay not because they want to be a helping hand in the
prosperity of the country but they pay because it is basic obligation imposed by the
government upon them. Taxes play a very important role in the development of the country.
Moreover, taxation is the best option to collect revenues unless some revolutionary person
comes and change this whole system by devising some other innovative ways. There are many
loop holes in tax laws which are exploited in different ways. If I were made the ruler of the
country, I would develop such trustworthy relations among myself and the people of my nation
that none will consider it as a forced duty which they have to fulfill but they themselves will
want to pay taxes. One of the main reason people don't pay taxes is because they do not trust
the government that they are using the people's taxes on right places for the betterment of the
country. Therefore, people don't want to fill the pocket of the corrupt politicians by their hardly
earned income. Creating trust among the government and the people will not be a child's play
but still in order to create trust and to earn the faith of public strong actions would be taken on
corrupt politicians, no second chances would be entertained. I will not be setting any criminal or
my fellow politician free in order to protect my image. But they will be held accountable to
make people believe that I am on their side. Strict check and balance would be kept about the
asset of my fellow party members and if any abnormal change in asset is observed during my
reign, that person would be held accountable. Once this trust is built no one would be involved
in tax evasion. Special teams would be made to catch the remaining tax evaders. Punishments
would be made comparatively severe for tax evaders. If these people are able to pay the
amount, they owe the government they will be set free otherwise they will end up in jail for 7 -
10 years.

One of the reasons the revenue fall low of which the government estimated is because people
have no awareness about tax. Special posters would be made which will be spread all across
the country. Advertisements would be made explaining that how their tax can help change
country. Moreover, some advertisements would be designed in such a way explaining the
severity of the crime of evading taxes. In order to take care of education, health etc. fund-
raising activity would be carried out. Except the politicians one of the most pious person whom
every single person trust, would be chosen for monitoring the funds in that particular area and
everyone could donate according to his wish. And most importantly the funds collected would
be invested on the schools, hospitals, roads of the same area from where they are collected.
Thus, the people would actively take part in fund raising.

I will balance goals such as increased revenue mobilization, sustainable growth, and reduced
compliance costs with ensuring that the tax system is fair and equitable. The tax structure
would be made in such way that it may not put burden on the taxpayer. It would not be kept
too high or too low that it could not meet our government's expenditure. Accurate balance
would be created among expenditures and revenues so that we do not have to take loans.
Every nation in the country has different laws and there is not much difference in the laws,
main problem comes in the enforcement of such law. Therefore, I am thinking of taking special
care of enforcement of the laws. Various loopholes present would be eliminated like not
declaring the offshore assets is one of the biggest causes of lower revenue, for this purpose I
would encourage cross border investigations and a program would be started under which the
owner of the offshore companies would get given incentives in which they will not be taxed on
their foreign income only if they invested that money within the country.

Foreign investors would be given incentives and their tax rate would be kept comparatively low
so that more investors could invest in our country. In order to facilitate the public, I would
introduce "No Tax November," in which the middle class and lower middle-class people will be
exempted from all kinds of taxes. Special attention would be given on the natural resources in
the country for its prosperity. In order to decrease the inequality, the rich should not only pay
more taxes than poor but they should also pay more taxes proportionately. In order to simplify
book keeping requirements declining balance method should be used which automatically
accounts for capital gains and losses from asset disposal. The property owners are the
wealthiest class if the country, the people who lease the land are comparatively taxed more but
I will introduce such structure that the tax rates for the property owner will be increased.

Every three months a special press conference would be arranged telling people of how much
tax is collected and were every single penny of their tax is being invested or used. Thus,
everything would become clearer and more transparent. And this will create a feeling of
happiness among people that they have done something good and their tax money is being
used for the welfare of the country. It will encourage people paying taxes more honestly. Love
and honesty are always from both sides, if we are being honest with the public the public would
also show same respect and love towards us.

END!