Transparency of income tax policy Introduction Income tax is a very important thing for a country.

Government collects tax to run a country and develop the country. Every country collects tax from the people. For collecting this tax government fixed some policy or rules. This rules are very important to collect tax and also for the tax payer. If taxpayers and their advisers cannot understand the tax system, they cannot evaluate the impact of that system. Beyond the fundamental aspect of actual and perceived fairness, proposing understanda le changes to an understanda le tax system !ould result in roader consensus on !hether a change is necessary, !ise, or effective. " tax that is not understanda le can e easily retained or raised !ith little a!areness among taxpayers a out ho! the tax affects them. The tax system is a primary lin# et!een citi$ens and their government. Each individual is entitled to an investment tax credit of 1% percent of the total income or T# 1&&,&&& !hichever is less. Incomes from small and cottage industries are entitled to a % to 1& per cent tax re ate depending on the production volume. 'n the first T#. (&,&&&.&& of total income ) no tax o ligation 'n the next T#. *&,&&&.&& of total income ) 1&+ 'n the next T#. %&,&&&.&& of total income ) 1%+ 'n the next T#. 1, %&,&&&.&& of total income ) ,&+ 'n the alance of total income ) ,%+ If they do not understand the policy then they can not pay taxes to the government and country !ill face some pro lem. "s !ell as tax payer can face pro lem if they do not pat

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Transparency of income tax policy taxes accurately and regularly. -o it is very important for oth to understand the policy of income tax. In Bangladesh, government ta#es many steps for understanding this policy to the general people. They used some campaign of tax la!, .ela or tax fair and also suggest on the !e site. -o, my research !ill e to find out that the policies are transparent or clear to the people or not/ I have to find that ho! many people of Bangladesh are #no!s !ell a out the income tax policies.

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Transparency of income tax policy Background In my research I used some !e sites and oo#s !hich are very useful to me. I have learned many policies of income tax and ta#e some information a out the policies of income tax. In the sources I found the division of income !hich is very important to #no! the people and some other related topics !ith the policies. There are fe! 0ournals !hich are from a ne!spaper. In this ne!spaper I found o 0ection on this policies. These o 0ections are made y the general people !ho are paying taxes. -o it is much clear from the 0ournal that they have some pro lems to understand these policies. From the sources I can understand that the transparency or clearness of these policies is not so good. Though the government tries to clear these policies, they are failed to do that. I found the !ay that government tries this very hard. For the general people the government used pu licity y hand and as !ell as y technology. -o, the people are not clear a out the policies as I understand from the sources I get from various purposes. I also tal# !ith an income inspector a out the transparency of the income tax policies. 1e also touches me that most of the people do not #no! a out the policies that are provided y the government.

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Transparency of income tax policy "reas to e studied

The 2uestions a out the topic of the research are given elo!3 1. 4hat is the rate of income tax ased on their income/ ,. The division of income tax rate on income is fair or not/ 5. Is the form of income tax 6income tax return form7 clear to everyone/ *. 8o !e understand all the terms and condition of the income tax policy/

Hypothesis Government collect taxes from the general people ecause of develop the country. for ta#ing this taxes government create some rules li#e income level, amount of !ealth, ta#ing loan, giving loan etc. people #no! the rules and according to their rules they have fill up the form 6income tax return form7 and give tax. But most of the people of our country do not #no! !hat these policies to give tax are and y giving tax they !ill get enefit from government. Thesis statement: Income tax policies are not transparent to the general people.

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Transparency of income tax policy

Research methodology For my primary source of this research, I depended on a survey to find out ho! many people are clear a out the income tax policy. I survey people !ho are tax payers oth male and female people and also select some students. I too# one intervie! of income tax inspector !ho investigates the tax payers are legally paid tax or not. "s for my secondary source for this research, I ro!se through the internet and go through ne!spaper articles, maga$ines and 0ournals and also some oo#s of income tax !ritten y specialist on those topics.

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Transparency of income tax policy Data Analysis and data presentation

1.

4hat is your income 6yearly7/ 9ess than 1,(%,&&&:) 1,(%,&&&:) to *,*&,&&&:) *,*&,&&&:) to ;,(%,&&&:) ;,(%,&&&:) to 11,*&,&&&:) 11, *&,&&&:) and a ove.

"fter surveying the people I have got my ans!er. From the thirty people I surveyed, ma0ority of them are male and their income is in et!een 1, (%,&&& to ;,(%,&&&. Interestingly I got t!o people !ho r around ,* years old and theey are earning is 11, *&,&&&:) and a ove.

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Transparency of income tax policy

,. 8o you pay income tax/ <es, regularly. =o. not at all. <es, ut not regularly.

1ere I got that only 1%+ of the people I survey !as not paying tax ut the alarming thing is 5(+ of the people I survey is not regularly paying tax. It can ecome harmful for us as !ell as for our government.

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Transparency of income tax policy

5. >an you fill up income tax return form alone/ <es, off course I can, and I al!ays do it myself. =o, I have my la!yer to go it for me. <es, I can ut, I don?t have to do it as my office does it for me.

Income tax form is very important for paying tax. It is the form that must fill up and paid the tax according !ith the form. -o, it is very important to understand it. But, after the surveys I got that a out ;%+ of the people I survey do not fill up their form instead their la!yer do it for them. This means that people r not properly a!are a out the income tax policy. -o the income tax policies are not transparent to the people.

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Transparency of income tax policy

*. From !here do you get help/ Firm or organi$ation. Income tax la!yer. @eers.

This is very predetermined that ma0ority !ill for income tax la!yer ut some of them !ere different I !ill say only fe!. A&+ of the people I survey too# help from their la!yer.

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Transparency of income tax policy %. "re they 2ualified and !ell)#no!n a out income tax/ <es, 2ualified enough to do the tas#. =o, I don?t thin# so, ut I have no other options. <es, very 2ualified and I trust them completely.

1ere I got that ;A+ of the people I survey are very sure that the person !ho is doing their !or# regarding tax payment is very 2ualified. 'nly 1&+ of the people I survey does not have any option and that is !hy they are going to ta#e help from the la!yer.

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Transparency of income tax policy (. 8o you #no! the division of income tax rate on income/ <es, some!hat ut not the details. <es, I #no! every detail. =o, I have no idea at all.

I gave this 2uestion to #no! !hether people I survey #no! anything or not a out tax and another thing I !as persuading that !hether people #no! something a out tax ut they are not clear 0ust ecause it is not transperent. "fter survey I got that (A+ of the people I survey #no! some!hat ut not details !hich proves that as tax policy is not transperent people are still in confusion.

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Transparency of income tax policy

;. 8o you understand all the terms and condition of income tax/ If no give reason/ <es, I do to some extent. <es, I understand everything ecause I studied it. =o, ecause BBBBBBBBBBBBBBB

This is very straight for!ard 2uestion and I got that ;&+ of the people I survey understand all the terms and condition of income tax to some extent.

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Transparency of income tax policy

A. "re you happy !ith current income tax policy/ <es, I am completely happy. <es, some !hat ut it can e improved. =o, the policy is to demanding. I have no idea at all.

1ere I got some different ans!er. (1+ of the people I survey are saying that they are ahppy !ith the current policy ut they !ants some improvement. 'n the other hand, ,9+ of the people I survey is not happy !ith the policy instead they are saying that the existing policy is very demanding.

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Transparency of income tax policy 9. 4hy governments collect income tax/

To raise government fund. For the !elfare of the people. To develop the country. To run the country.

1ere I got very different ans!ers. -ome ody is saying that governments collect income tax to raise government fund. 'ther people saying that governments collect income tax to develop the country and other people saying to to run the country.

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Transparency of income tax policy

1&. 4hy you pay tax/

This is my duty. To help the government. Every ody pay and that is !hy I pay.

" out ;%+ of the people I survey thin#s that paying tax is a duty !hich I thin# a very good sign for our future.

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Transparency of income tax policy

11. -hould government change the policy/ <es, !e need the change no!. =o, it is o#ay. I don?t care a out the change.

1ere I got from my servey that a out %(+ of the people I survey !ants change a out the income tax policy in our country !hich also proves that !e need to transparent the income tax policy to thr general people.

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Transparency of income tax policy

1,. "ny suggestion a out current income tax policy/ It has to e !ell defined. It has to e transparent. It has to e easily understanda le.

"s I said previously, from the ans!ers orCf this 2uestion I can say thad !e need to have a traneperent income tax policy. 1ere !e can see that ;%+ of the people I survey !ants the polcy has to e transperent.

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Transparency of income tax policy Summary Findings @eople of our country do not #no! a out the policy of income tax clearly. -ome people are #no!n a out that and they are helping others to understanding these policies. Government tries to help people to #no! the policies, so that they have to try !ith another !ay for ma#ing understand the general people and ma#e the rules very easy and effective for everyone. @eople of our country o 0ection that the tax ta#er and !ho help the people to understand the policies on ehalf of the government are not so honest. For this reason they are not a le to understand and not comforta le to pay tax and understand the policies of the income tax. .ost of the people of our country live under the poverty line so that they do not try to understand and !ho are a le to exceed this line and a le to pay tax are not so !ell educated. Therefore, they are not a le to understand the policies of the income tax.

.y hypothesis has een proven right in some cases and !rong in some cases. I assumed the reason for don?t understanding the policies is uneducated people !hich is correct. But my hypothesis a out the government lac#ing of pu licity of the income tax policies is not right ecause government try to his est to understand the policies ut this !as not so effective for our country people. .oreover I assumed that the policies are not transparent to the general people ecause of the tax collector people is true.

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Transparency of income tax policy Conclusion Transparency of income tax policy is very important for a country and a nation. It is very important for a country ecause the economy of the country depends on this tax. The country run on this tax and it can develop the country. -o, the transparency of the income tax policy is the #ey of a country to develop. It may e possi le y some strict steps. This can ma#e our country economically very strong. -o, the transparency of the income tax policy to the general people is very important for the country and as !ell as for the people of those country.

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Transparency of income tax policy Recommendations From the survey I found many suggestions for the government to improve the income tax policy. The people !ho are the survivor in this country give this suggestion to ma#e it easier to understand and transparent for themselves. The people !ant the tax collection should e online. This is one of the est processes as I o serve. This !ill help people very much. If it happens then the dishonest people have no po!er to influence the tax payer so that they can give the tax freely and understand ho! they are giving tax and !here it goes. 'ther things that people suggest to ma#e easier the policy and more open for all so that anyone can understand easily. -ome people say that the government should change the policy and they should collect tax from sector to sector. This is a very good idea to ma#e the sector different and people can give tax easily in their respective sector. These ideas are very much effective if the people can set up these ideas. It may e solve the transparency of the income tax policy.

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Transparency of income tax policy References "#hter, -. 6,&1&, Danuary ,*7. =BE plans e)pay for income tax. Eetrieved 8ecem er A, ,&1&, from http3::!!!.thedailystar.net:ne!8esign:ne!s)details.php/nidF1,51;A.

"lam, G. H "lam, . =. 6,&&A, Duly)-eptem er7. Tax Expenditure: The Bangladesh Perspective. Retrieved December 8, 20 0, !r"m http3::!!!.n r d.org:IncomeTax :IncomeITaxIEeturnIFillupIGuidelineIforIIndividualITaxpayer.pdf

"m$ad, ". 6"ugust ,&1&7. Kor aiene 2010. 8ha#a3 Jolom printing press.

"ndreoni, D., B. Erard, and D. Feinstein, KTax >ompliance,L 5( Journal of Economic Literature, =o. ,, Dune 199A, A1A)A(&.

Barman, >. 1. 6,&1&,8ecem e %7. Inspector of taxes. Taxes circle)A9, taxes $one)&A, ;*, Bi0oy =aga, 8ha#a)1&&&. http3::!!!.asiatradehu .com: angladesh:tax.asp http3::!!!.taxguide d.com: http3::!!!. i$ angladesh.com:incomeItaxIincentive.php http3::!!!. angladeshinfo.com: usiness:incomeItax&1.php

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