Taxation and Ethics Exploration

What are the main principles of taxation?

• Equity, efficiency, simplicity, certainty, and convenience.

• Complexity, unpredictability, and rigidity

• Progressivity, neutrality, and sustainability

• Transparency, flexibility, and accountability

Define the concept of tax equity.

• All taxes should be the same for everyone.

• Is the total amount of taxes collected by a government.

• Taxes are based solely on the type of income earned.

• "The more you earn, the more you pay"

What is the difference between direct and indirect taxes?

• Direct taxes are optional for taxpayers.

• Direct taxes are always higher than indirect taxes.

• Indirect taxes are collected by intermediaries from the consumer.

• Indirect taxes are only paid by businesses.

Tax compliance...

• has no impact on public trust.

• is adherence to laws, regulations and standards

• is only necessary for large corporations.

• is primarily about maximizing profits.

What are ethical tax practices?

• Tax evasion strategies that minimize payments.

• Compliant and transparent tax management.

• Methods that exploit loopholes in tax laws.

• Opaque practices that hide financial information.

Tax evasion...

• increases government funding for public services.

• reduces public services and confidence in government.

• has no effect on honest taxpayers.

• promotes trust in government institutions.

Tax audits...

• are only for large corporations.

• are primarily used to increase tax rates.

• focus only on employee performance.

• ensure compliance to tax laws

Progressive taxation...

• is a system where all individuals pay the same amount in taxes.

• is a flat (fixed) tax rate applied to all incomes.

• is a tax system where higher incomes are taxed at higher rates.

• means lower incomes are taxed at higher rates.

Corporate tax strategies...

• only impact large corporations.

• can create competitive imbalances.

• primarily benefit small businesses.

• don't affect small businesses

Taxation...

• has no effect on income distribution.

• only benefits the wealthy.

• increases income inequality.

• redistributes wealth, potentially reducing inequalities.