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Reasons of Tax Avoidance and Tax Evasion: Reflections from Pakistan

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  • Muhammad Muazzam Mughal

Abstract

Amount of taxes serves as life blood for government. This paper aims to recognize reasons/causes of tax avoidance and evasion in Pakistan. Relationship between variables of reasons/causes of tax avoidance and evasion are also examined. A questionnaire is developed after reviewing literature to collect responses. Data are analyzed using percentages, arithmetic mean, standard deviation, variance, central limit theorem, cumulative normal distribution calculator, factor analysis, and correlation technique. Results indicate that all variables of reasons/causes of tax avoidance and evasion in Pakistan are correct. Furthermore, there exists a highly significant positive relationship between individual variables of reasons/causes of tax avoidance and evasion in Pakistan at 100% significance level.

Suggested Citation

  • Muhammad Muazzam Mughal, 2012. "Reasons of Tax Avoidance and Tax Evasion: Reflections from Pakistan," Journal of Economics and Behavioral Studies, AMH International, vol. 4(4), pages 217-222.
    • Handle: RePEc:rnd:arjebs:v:4:y:2012:i:4:p:217-222
    DOI: 10.22610/jebs.v4i4.320
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    References listed on IDEAS

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    7. Pommerehne, Werner W & Hart, Albert & Frey, Bruno S, 1994. "Tax Morale, Tax Evasion and the Choice of Policy Instruments in Different Political Systems," Public Finance = Finances publiques, , vol. 49(Supplemen), pages 52-69.
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    Cited by:

    1. Cyan, Musharraf R. & Koumpias, Antonios M. & Martinez-Vazquez, Jorge, 2017. "The effects of mass media campaigns on individual attitudes towards tax compliance; quasi-experimental evidence from survey data in Pakistan," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 70(C), pages 10-22.
    2. Ghulam Mustafa, 2025. "Tax Policy of Pakistan: A Review Paper," PIDE-Working Papers 2025:9, Pakistan Institute of Development Economics.
    3. Alexi Thompson & James J. Jozefowicz & Cynthia Bley Ndede Epse Hourizene, 2025. "The Effect of Tax Evasion on Consumption in OECD Countries," Economic Papers, The Economic Society of Australia, vol. 44(3), pages 223-232, September.
    4. Erstu Tarko Kassa, 2021. "Factors influencing taxpayers to engage in tax evasion: evidence from Woldia City administration micro, small, and large enterprise taxpayers," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-16, December.
    5. Cordelia Onyinyechi Omodero, 2019. "Tax Evasion and Its Consequences on an Emerging Economy: Nigeria as a Focus," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 127-135, December.
    6. Syed Hassan Raza & Syed Muddassir Abbas Naqvi, 2016. "Impact of Tax Evasion on Total Tax in Pakistan," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(11), pages 730-739, November.
    7. Muhammad Ghulam Shabeer & Abdul Wahab Khan & Zahid Iqbal & Muhammad Salahuddin Ayyubi, 2024. "A Study of Pakistan’s Fiscal Landscape: Examining the Influence of Institutional Quality and Tax Policy Transformation," Journal of Economic Impact, Science Impact Publishers, vol. 6(1), pages 106-114.
    8. Koumpias, Antonios M. & Martinez-Vazquez, Jorge, 2019. "The impact of media campaigns on tax filing: quasi-experimental evidence from Pakistan," Journal of Asian Economics, Elsevier, vol. 63(C), pages 33-43.
    9. Musharraf Rasool Cyan & Antonios M. Koumpias & Jorge Martinez-Vazquez, 2016. "The Effects of Media Campaigns on Individual Attitudes towards Tax Compliance; Quasi-experimental Evidence from Survey Data in Pakistan," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1609, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    10. Jamalzai, Rahmatullah & Rasa, Muhammad Mirwais & Haq, Irfan Ul, 2024. "The impact of Tax Evasion on Economic Growth of Afghanistan: An Empirical Evaluation," MPRA Paper 125169, University Library of Munich, Germany, revised 13 Mar 2025.
    11. repec:eur:ejesjr:378 is not listed on IDEAS

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