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" UNDOCUMENTED ECONOMY   UNDOCUMENTED ECONOMY CORPORATE VIEW   By   M. Iqbal Patel,   Chartered Accountant, M. Iqbal Patel & Co., Karachi   Undocumented and informal economy is the central problem of the economic and taxation systems of the country. But it surprises when the issue is commented by a regulator. The Securities and Exchange Commission of Pakistan (SECP)'s Chairman has expressed his concern over the state that the size of undocumented economy is expanding, the reason quoted by him is that because the people are not voluntarily paying taxes, which is a disputable assertion. However, he skipped to suggest any answer of the problem to resolve it which as a regulator he was expected. The State Bank of Pakistan has estimated the size of informal economy in Pakistan was around $34 bln in 2011.   The problem of documentation of economy is related to corporate laws as much as it is related to tax laws. There are number of - provisions under sections 230-247 and in the Fourth and Fifth Schedules etc. of the Companies Ordinance, 1984 (CO) which provides for documentation of business transactions making the Board of Directors of the companies responsible to keep proper books of accounts recording therein the transactions concerning all money received, expanded in respect of which the receipt and expenditure take place, all purchases of goods and assets, the liabilities etc. of the company which are open for inspection by the SECP. Thereby the financial activities of the corporate sector are fully documented.   Furthermore the directors and the principal officers of a company are made accountable they will be guilty of an offence if they or any of them failed to comply with, intentionally or otherwise, the statutory requirement of…