Evasion of Taxes and Frauds

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Cuprins proiect:

. BUSINESS ETHICS' ASPECTS
1.1. The purpose of ethics
1.2. Approaches to business ethics
2. TAX EVASION
2.1. Tax definition
2.2. Tax evasion definition
2.3. Distinction between tax evasion and tax avoidance
2.4. Empirical evidence on taxpayers' behavior
2.5. Level of evasion and punishment
2.6. Procedures and institutions
3. STUDY CASE
CONCLUSIONS

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Ethical values provide the foundation on which a civilized society exists. Without the foundation, civilization collapses. On a personal level, everyone must answer the following question: What is my highest aspiration? The answer might be wealth, fame, knowledge, popularity, or integrity. But if integrity is secondary to any of the alternatives, it will be sacrificed in situations in which a choice must be made. Such situations will inevitably occur in every person's life.

Societies are tragically vulnerable when the men and women who compose them lack character. A nation or a culture cannot endure for long unless it is undergirded by common values such as valor, public-spiritedness, respect for others and for the law; it cannot stand unless it is populated by people who will act on motives superior to their own immediate interest. Keeping the law, respecting human life and property, loving one's family, fighting to defend national goals, helping the unfortunate, paying taxes--all these depend on the individual virtues of courage, loyalty, charity, compassion, civility, and duty.

When ethical values are falling, people often turn to government for help. However, there is little, especially in a free society, government can do, when its citizens are unethical.

The purpose of ethics in business is to direct business men and women to abide by a code of conduct that facilitates, if not encourages, public confidence in their products and services. Professional accounting organizations recognize the accounting profession's responsibility to provide ethical guidelines to its members.

Can ethics be taught? At some point in life, ethics must be taught. People are not born with innate desires to be ethical or to be concerned with the welfare of others. The role of the family includes teaching children a code of ethical behavior that includes respect for parents, siblings, and others. The family bears chief responsibility for ensuring that children will receive the necessary education and moral guidance to become productive members of society. The basic values such as honesty, self-control, concern for others, respect for legitimate authority, fidelity, and civility must be passed from one generation to the next, a fundamental process of the family. The breakdown of the family is associated with some terrible social problems.

1.2. APPROACHES TO BUSINESS ETHICS

When business people speak about "business ethics" they usually mean one of three things: (1) avoid breaking the criminal law in one's work-related activity; (2) avoid action that may result in civil law suits against the company; and (3) avoid actions that are bad for the company image. Businesses are especially concerned with these three things since they involve loss of money and company reputation.

In theory, a business could address these three concerns by assigning corporate attorneys and public relations experts to escort employees on their daily activities. Anytime an employee might stray from the straight and narrow path of acceptable conduct, the experts would guide him back. Obviously this solution would be a financial disaster if carried out in practice since it would cost a business more in attorney and public relations fees than they would save from proper employee conduct.

Perhaps reluctantly, businesses turn to philosophers to instruct employees on becoming "moral." For over 2,000 years philosophers have systematically addressed the issue of right and wrong conduct. Presumably, then, philosophers can teach employees a basic understanding of morality will keep them out of trouble.

We cannot easily resolve the tension between the ethical

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