Ethical Perspective On Tax Avoidance

Ethics are defined as rules of behavior based on ideas about what is morally good and bad. Ethics is also an area of study that involves ideas about what is good and bad behavior and what is morally right or wrong. Ethics can vary from person to person. Ethics deals with making moral judgments about what is right or wrong, good or bad. Right and wrong are qualities or moral judgments we give to actions and conduct. Ethics provides us with a way to make moral choices when we are uncertain about what to do in a situation involving moral issues. In everyday life we make moral choices and judgements.

Ethics is the division of philosophy that focuses on morality, which defines behavior as right and wrong. Ethical principles represent standard guidelines for behavior. Ethics aids a person in the justification of a course of action. Society defines what moral values and behaviors are held and legislated (DeNisco & Barker, 2016). Ethical principles include the concepts of autonomy, freedom, beneficence, fidelity. Autonomy entails a person’s desire to direct themselves. Freedom is the person’s right to do as they please. But this right is contingent on members of a society agreeing, whether explicitly or not, to abide by behaviors that do not deceive or force others, behaviors that lead to peaceful interpersonal relationships. Beneficence is the person’s motivation to do good. Fidelity is a person’s faithfulness to safeguarding his or her values (Husted & Husted, 2015). Doornbos, Groenhout and Hotz (2005) describe three levels of

However, the introduction of such a law becomes increasingly difficult when the companies being questioned are some of the largest and wealthiest in the world. In order to truly understand the stature of these companies, one would need to look into some of the statistics regarding them. Remarkably, according to Al Jazeera America “the largest 500 U.S. companies would owe an estimated $620 billion in U.S. taxes” if they had to declare all their overseas stockpiles, of around $2.1 trillion (“Al Jazeera America”). In addition, it found that “three-quarters of the 500 biggest companies utilize tax havens”. The top three offenders included Apple, General Electric and Microsoft. In many cases according to the report, the money is not being utilized to improve foreign economies. By this they mean to say that, U.S. businesses were not using their overseas profit to build factories and employ individuals. Instead, the overseas profit was a result of accounting tricks purposely implemented to benefit the business alone. To put all of this in perspective, the United States is losing billions of dollars to foreign economies. These taxes are being introduced into countries such as Ireland and Luxembourg. In other words the money that should be invested in the United States of America on public services, is being

The International Regulatory Services (IRS), is charged with the responsibility of administering and governing the USA federal regulations related to taxation. However, the US tax regulatory board is presently facing several issues that undermine the effectiveness of the relevant tax laws. The main aim of this paper is to discuss the IRS ethical issues and explain how to avoid them from an ethical and government point of view.

It is imperative for tax professionals to understand the ethics environment of the practice. This paper is focused on the ethical responsibilities of tax professionals.

Ethics: art sets of beliefs about right, and wrong, and good and bad, universal ethical standard ethical norms that apply to all people across a broad spectrum of situations. Clearly, ethics relate to individuals and their day to day decision making. Business ethics, application of right and wrong, good and bad, in a business setting. ethical dilemmas, decision that involves a conflict of values.

On the other hand, people who consider tax avoidance a right of an individual or a company consider aggressive anti tax avoidance attitude of government to be socialist in nature instead of democratic. They argue that it is the right of any person to keep the maximum amount of money that he or she earned and pay least amount of tax required. They think that questioning the morality of a tax avoider is not appropriate because he has more right to that money than the government and instead of questioning the morality, government should lower tax rates, simplify tax process and legislate accordingly (Ryan Bourne, 2012).

Discuss the adequacy of the current deterrence model of tax compliance based on a combination of penalties and rate of audits. Does it provide the proper balance in light of our “voluntary compliance” system in the United States?

Ethics refers to the accepted code of conduct by an individual while performing his/her duties. It is a set of principles that can result to critically changing actions and choices that had been made previously. Ethics can be referred to as a branch of philosophy that assist in dealing with the decision making dynamics on what is wrong or right (Wöhlke, Wiesemann, Schicktanz, & Carmi, 2012).

What is Ethics? Ethics is the study of moral principles. Moral principles are the standards of what is right and what is wrong. However, Different people have different guidelines on what these two are. Take the example that asks the question “To kill or not to Kill”(Study.com). The author of this article stated that people would say that they would not kill. Then, gave scenarios, and sure enough their opinion changed. Furthermore, This shows us critical thinking and realising that different people have different views can change our opinion.

All the tax-related matters should be handled with utmost sincerity and carefulness. The government should take strict action to it and stick in the favor of citizens of the country who are honestly paying high taxes. In any way, the public should not feel cheated and disappointed.

With a higher level of tax morale, an individual is more likely to remain compliant to tax laws even when the economic punishment for tax evasion is lacking. This being said, it is fair to suggest that the alternate position of committing tax evasion is a result of a low ethical sense of duty. A low ethical sense of duty correlates with poor ethics in an individual. Therefore, the lower the ethical sense of duty, than the lower tax morale an individual is likely to have. Having a low tax morale means that an individual is more susceptible to committing tax evasion. This shows that those who are ethically weak have a greater likelihood of committing tax evasion.

It is widely known that Tax Havens have a terrible influence on the nations. For some individuals or corporations, Tax Havens do bring some tax saving; countries, however, suffer a long-term tax, and capital lose from Tax Havens. Nowadays, many countries are trying to eliminate the harmful effects that Tax Havens bring, but Tax Havens still exist in the world. The punishments do not act effectively as people expected. If policy makers want to solve the problems of Tax Havens, they need to understand the nature of Tax Havens and what create Tax Havens before making new regulations to restrict individual or companies’ foreign investment or business activities. Once they know the reasons, they can use a more efficient way to deal with Tax Havens. Many papers have discussed how bad Tax Havens are, and how many losses Tax Havens bring, however, there are fewer articles written about when do Tax Havens start and why do Tax Havens happen? The purpose of this journal is to help readers to understand why Tax Havens exist in the world in the first place and provide different thoughts for some governments.

Tax evaders are punished with criminal charges and considerable penalties in mostly all developed countries, although multiple factors impact the efficiency of tax administration and subsequently the persecution of this crime. One of the major problems is for example corruption of tax

Ethics are moral principles or values that govern the conduct of an individual or a group.It is not a burden to bear, but a prudent and effective guide which furthers life and success. Ethics are important not only in business but in academics and society as well because it is an essential part of the foundation on which a civilized society is built.