a) How would this scheme enable the Govt. to cover its budget deficit?

Ans:

The purpose of this scheme is to bring non filers in tax returns , Government will charge some
amount which will also become source of income for government, because Government will take
extra income on undisclosed assets or sales, aising tax revenues, adding beneficiaries in tax base
who have not declared their assets previously.

b) How would this ordinance be proved helpful in documenting the country’s economy?

Ans:

This is good opportunity for existing tax filers who only show limited income doesn’t show other
source of income or they hide sales or undisclosed assets, this scheme will being their income or
assets into legal documented circle they will revise their balance sheet their undeclared asset
income will become legal and regularized

c) What benefit the claimant would receive under this scheme?

The assets of claimant would become legal, their assets won’t be confiscated they can use this
scheme which is beneficial for those who has been hiding or not declaring their assets fair &
transparently for years, can make their assets legitimate by declaring them whether they exist
within or outside Country. It also helps relieve the taxpayers, who are unable to pay tax debts,
and revive the market.

d) Is there any implication for the regular tax payers of the country?
Credit Scoring are helping financial institutions in evaluating and managing credit risk
effectively

Credit Scoring is method to check the credit history of loan applicant, review historical data by
using statistical techniques creating credit score, Score model is build or scorecard is developed
to check how applicant has been taking loan how he repaying, is he defaulter from the other
financial institutions or his history is showing delayed payments or short in payments.

By developing Credit scoring information is taken from credit bureau his credit behavior is
judged assessment made on how frequent he is in debt payback.

Several statistical methods are used to develop credit scoring systems, including linear
probability models, logit models, probit models, and discriminant analysis models.

Following are advantages of Credit Scoring system.

1. Instant Right Decision Making:

Intuitions can also review amount owed by different institutions, length of credit history,
Types of credit. Institutions can easily judge and make right instant decision about the
application.

2. Payment Record/History:

The main thins matters is willingness to pay back, he is good in paying back previous debt
timely shows his good reputation Credit inquiries can be dealt easily by scoring of credit
history

3. Control of Debt:

Credit Scoring makes easy control of debt without involving too much risk without
uncertainty; by reviewing credit scoring they can make decision to issue debt or no.

4. Transparency:

Credit Scoring gives transparency about customer’s applicants without being bias about
gender, religion, profession.

5. Accountability:

Credit Scoring makes accountable the borrower for the loan he has taken, he is aware his
history is with credit bureau, he is accountable to payback debt to maintain the good history.