Tax Book 2023

Ethics in Tax Laws Chapter- 02

2. Transparency

All Proceedings must be transparent and must be seen as transparent.

3. Equity

Best Tax administration is not that which collects most revenue rather it depends how this

revenue generation is accomplished. Whether all stakeholders are taxed fairly or tax is

collected from poor /salaried class after failing to collect taxes from

entrepreneurs/businesses. Thus, equity demands that tax administrator should not

achieve its objectives in an irrational manner.

4. Accountability

There must be a strong system of accountability for wrong doers which should curb

corruption, nepotism and maladministration.

Under the four pillars, some of the ethical issues facing Tax administration:

1. Acceptance of gifts;


2. Conflict of Interest;


3. Selective application of the law/ or inconsistency in applying the law;


4. Political influence;


5. Confidentiality/secrecy;


6. Discretion;


7. Corruption;


8. Lack of Autonomy

In order to avoid pitfalls of the abusive use of discretion, seven principles for structuring

discretion are defined which are as under:

 Open plans,

 Open policy statements,

 Open rules,

 Open findings,

 Open reasons,

 Open precedents and

 Fair informal procedure

3.3 Responsibilities of the tax implementing authorities

The tax administrator shall perform the following responsibilities:-

1. implement the tax administration reforms;


2. promote voluntary tax compliance and to make the tax administration a service oriented
   organization and to implement comprehensive policies and programs for the education
   and facilitation of taxpayers, stakeholders and employees, etc.;


3. adopt modern effective tax administration methods, information technology systems and
   policies in order to consolidate assessments, improve processes, organize registration of
   tax payers, widen the tax base, and make departmental remedies more efficient including