The Ethical Considerations of Tax Avoidance and Evasion

Tax avoidance and evasion are two practices that raise important
ethical questions in the realm of taxation. Tax avoidance involves
using legal methods to minimize tax liabilities, while tax evasion refers
to illegal activities aimed at evading tax responsibilities. Both practices
have implications for fairness and the effective functioning of the tax
system.

For instance, companies may engage in aggressive tax avoidance

strategies to shift profits to low-tax jurisdictions, thereby reducing their
tax bills. While legally permissible, such strategies can undermine
public trust in the tax system and lead to a perception of unfairness
among taxpayers.

Ethically, tax evasion is viewed as a serious offense as it undermines

the tax system and can deprive governments of essential revenue.
Ensuring that individuals and corporations meet their tax obligations
supports the integrity of the tax system and promotes social equity.