Sole Proprietorship, Partnership and Incorporated.
SOLE PROPRIETORSHIP AND TAX COMPLIANCEINTENTION IN SELF ASSESSMENT SYSTEM: A THEORY OF PLANNED BEHAVIOR APPROACH. According to Loo et.al (2010), the effectiveness of tax system in both developed and developing countries would very much. ordinary people such as these sole proprietor as taxpayers.
The main burdens with a sole proprietorship are that it is harder to get business related financing and that all debts, obligations and legal issues fall on the owner. General partnership: A general partnership is a association of two or more people establishing a business with the goal of earning a profit. There is little formality involved in.
So, sole proprietorship is considered to be small units which are necessary for the growth of economy in any country specially in a developing country like Pakistan. As sole proprietorship has a single owner so it also provides self employment opportunity for the owner of the business. Role of partnership in economic development.
The sole proprietorship is a business which is owned and managed by one individual. Some of its advantages are, the ease of formation, its management control, and its distribution of profits. Some of the disadvantages are, its unlimited liability, the lack of continuity, the capital requirements.
The sole proprietor may practise in his or her own name. Partners may practise in the name or names of his or her partner or partners, being chartered accountants. Partners may practise in the name of a firm existing at the time of the coming into operation of the Act or formed thereafter, provided that the partners in Malaysia are eligible to be registered as chartered accountants.
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I present three essays on income taxation in Pakistan. The first essay investigates how taxes influence agents’ earnings, compliance and business organization choices. Using a tax reform introduced in Pakistan in 2010, which raised tax rates on partnership earnings as compared to sole proprietorship income, as a natural policy experiment, I (i) identify a full range of behavioral responses.