A Qualitative Study Exploring the Challenges in Tax Fraud Investigations

Syed Mahmood Ali Shah; Dr. Muhammad Asif

doi:10.33897/fujbe.v9i2.949

Syed Mahmood Ali Shah PhD Scholar, Department of Management Science City University of Science & Information Technology, Peshawar, Pakistan
Dr. Muhammad Asif Associate Professor, Department of Management Science City University of Science & Information Technology, Peshawar, Pakistan

DOI: https://doi.org/10.33897/fujbe.v9i2.949

Keywords: Tax Fraud Investigations, IRS, Investigating Officer, Domestic Revenue Mobilization, FBR.

Abstract

The purpose of this study is to explore challenges in Tax Fraud Investigations faced by the investigating officers
and the study explores and highlights the real problems associated with such investigations. The study involves
in-depth interviews of fifteen investigating officers working in IRS Intelligence. Data collection involved focused
group interviews, individual indepth interviews and document analysis. The data were analyzed with the help of
grounded theory and thematic analysis. Research study suggests that in order to achieve quality performance of
Tax Fraud Investigations, it is very crucial to improve performance of investigating officers which may be
possible if the challenges highlighted by this research are overcome. It may further add value to the overall
domestic revenue mobilization efforts of Federal Board of Revenue besides creating deterrence for fraudulent
elements. Findings of the study are limited to the perspectives of fifteen participants. A similar study with larger
population in all the offices of IRS Intelligence as well as other investigating agencies could have provided even
more concrete and exhaustive results. Overcoming of such challenges and problems in Tax Fraud investigations
may invariably enhance the performance of investigating officer entrusted with tax fraud investigations and may
further increase the effective and efficient monitoring and enforcement activities while minimizing the evasion of
due taxes by fraudsters. The study further provides valuable insight into the prevalent investigation processes
which may be used by the legislators for making policies accordingly. The valuable insights into the problems
faced by the investigating officers may help the investigating agency to fix those problems for better performance
and in safeguarding the revenue of state. This is the first study of its kind conducted on problems and challenges
faced by the investigating officers conducting tax fraud investigations.