Tax Book 2023

Ethics in Tax Laws Chapter- 02

Sr. No. TOPICS COVERED

1. Ethics


2. Ethics for Legislators


3. Ethics for Administrators


4. Ethics for Practitioners


5. Ethics for taxpayers

(FOR CAF-^6 ,^ MODULE F^ & ICMAP STUDENTS)^

1. ETHICS

1.1 Ethics – meanings and application

The word ethics is derived from the Greek word ethos, which means "character," and from the

Latin word mores, which means "customs." Aristotle was one of the first great philosophers to

study ethics. To him, ethics was more than a moral, religious, or legal concept. He believed that

the most important element in ethical behaviour is knowledge that actions are accomplished for

the betterment of the common good. He asked whether actions performed by individuals or

groups are good both for an individual or a group and for society. To determine what is ethically

good for the individual and for society, Aristotle said, it is necessary to possess three virtues of

practical wisdom: temperance, courage, and justice.

2. ETHICS FOR TAX LEGISLATORS

2.1 Ethics for tax legislators

Although we have already discussed the objectives of Taxation however the same are repeated

here at the cost of repetition.

 For collection of revenue to run and administer the Government;

 To use as a tool for implementation of its policies; and

 For fair distribution of wealth.

Non-revenue objectives

Aside from purely financing government operational expenditures, taxation is also utilized as a

tool to carry out the national objective of social and economic development.

 To strengthen anemic enterprises by granting them tax exemptions or other conditions or

incentives for growth;

 To protect local industries against foreign competition by increasing local import taxes;

 As a bargaining tool in trade negotiations with other countries;

ETHICS IN TAX LAWS

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Chapter