Tax Evasion Essay

Tax evasion is where a taxpayer declares a smaller income in his or her return, by mistake or by fraud. Evasion can be either innocent or fraudulent. Innocent evasion may lead to reassessment; fraudulent may lead to criminal prosecution as well as reassessment. This paper highlights the increased

INTRODUCTION

The American Heritage Dictionary defines Fraud as “a deception deliberately practiced in order to secure unfair or unlawful gain”. Fraud always requires a perpetrator, an act of deception by perpetrator with objective to enrich him, a victim who suffers loss due to the targeted deception by the perpetrator. But what is the fertile ground for a fraud to happen? The existence of the three conditions “Opportunity”, “Pressure”,

Moral and Ethical Issues on Tax Avoidance and Evasion

Tax avoidance and tax evasion practically and theoretically exist differently.

The issue has been always been in the minds of people that is it right to avoid tax and is it ethical to evade tax.

The Fiji Revenue & Custom Authority’s primary objective is to seek and minimize tax liability through tax schemes. Tax scheme is seen as a complaint behavior; however, tax avoidance is more of a grey issue.

Avoiding tax by bending’ the rules of the tax system is not illegal” but the spirit of law illustrates it is wrong not to pay your tax.

The issue falls in the realms of ethics because individuals and businesses are expected to pay their taxes due under the law.

“Tax avoidance has been branded by some as an immoral and unethical practice that undermines the integrity of the tax system”.

Tax evasion is of course is an unethical behavior of entity or individuals, but tax avoidance is gives a blurred picture.

The country expects businesses to pay their “fair share” of tax so public goods can be available for the public to