Diversity is a characteristic that arises in countries all over the globe. Countries differ in terms of cultures, traditions, legislations as well as economic growth rates. One, however, can take cognisance of a common practice implemented by them; the levying of the tax. Tax is defined as a compulsory contribution to government revenue levied by the state through various avenues. This levy has raised ethical concerns commonly known as tax avoidance and tax evasion. Tax avoidance is the lawful attempt to minimise expenses by deducting taxes in order to decrease tax bills. Tax evasion is the illegitimate practice of not paying taxes by not disclosing certain income or reporting expenses that are not legally permitted. Tax planning is established in order to minimise unethical issues that arise from tax levies and to ensure efficient tax usage. Irrespective of where a country lies in terms of development, the enactment of the tax levy will affect it. Certain ethical implications may arise from these impositions. Legally tax planning and avoidance are allowed. Tax planning is using acceptable methods the country’s revenue service accepts; to reduce …show more content…
Unlike in Developed countries, who are already well established in terms of infrastructure and the standard of living, tax planning comes with a whole lot of severe repercussions in our Developing country, such as depriving economic upliftment as these taxes are used in building roads, hospitals and schools which will benefit our developing economy in the long-run. The corporate world bears the greatest responsibility in paying taxes, which makes their tax planning/ avoidance have the greatest effect in depriving economic upliftment. We can all go on about wanting to see change, however, we must start by being the change we want to see in