TAX 316 – Ethical Issues in Taxation (2)

These flashcards cover the key concepts, branches, and theories of ethics, specifically applied to taxation, international business, and civil service as outlined in the lecture notes.

Ethics

A system of moral principles concerned with what is good for individuals and society, derived from the Greek word "ethos" meaning customs, habits, character or disposition.

Epistemology

The theory of knowledge, specifically regarding methods, validity, scope, and the distinction between justified belief and opinion.

Metaphysics

The branch of philosophy dealing with the first principle of things, including abstract concepts such as being, knowing, identity, time, and space.

Logic

The branch of philosophy that studies inference; it is often referred to as the science of reasoning, deduction, thought, dialectic, and argument.

Descriptive Ethics

A branch of ethics that observes and records what people actually believe is right or wrong and how moral attitudes differ across cultures and time.

Normative Ethics

A branch of ethics that provides practical guidelines for how humans should behave and judges actions based on specific standards.

Meta-ethics

The study of the origins of moral values (God, nature, society, or reason) and the examination of what words like good, bad, right, and wrong actually mean.

Applied Ethics

The application of ethical theory to real-world, often controversial problems such as abortion or capital punishment.

Truthfulness

An ethical principle emphasizing honesty about oneself and to others, living a life that reflects that truth.

Autonomy

Derived from the Greek word "auto-nomos," it emphasizes an individual's capacity for self-rule or self-determination according to rational principles.

Beneficence

The ethical principle that an individual's actions should promote good, doing what is best for others with their well-being in mind.

Non-maleficence

The principle of not harming others or inflicting the least harm possible while aiming to achieve beneficial outcomes.

Justice

A complex ethical principle involving fairness, equality, equity, and the fair allocation of resources.

Taxation Ethics

The moral principles and standards that guide the behavior of taxpayers, tax administrators, and government in tax matters to ensure fairness, transparency, and efficiency.

Confidentiality (Tax Information)

The ethical requirement that tax authorities protect taxpayers’ financial information and ensure it is not disclosed to unauthorized parties.

International Business Ethics

Ethical principles that guide business operations across national borders, requiring multinational corporations to comply with different legal, cultural, and ethical standards.

Civil Service Ethics

The standard of conduct expected from government officials and public servants, including integrity, impartiality, and accountability.

Accountability (Taxation)

The obligation of government, tax authorities, and taxpayers to justify their actions regarding tax collection, administration, and the utilization of revenue.

Horizontal Equity

A form of fairness in taxation which dictates that like people should be treated in a like manner.

Vertical Equity

A form of fairness in taxation which dictates that individuals with higher income should pay higher taxes.

Tax Evasion

The illegal avoidance of taxes through fraudulent practices such as underreporting income or overstating deductions.

Aggressive Tax Avoidance

Legally minimizing tax liability using loopholes in tax laws, such as profit shifting or using tax havens, which is often considered unethical.

System Development Theory

The view that recruiting morally strong individuals is insufficient; they require support from their work environment and systems provided by their employer.

American Accounting Association (AAA) Model

An ethical decision-making model developed in $1990$ that uses a seven-step process to determine the best course of action consistent with moral principles.

Tucker’s Five Question Model

An ethical tool for business decisions that asks if a decision is profitable, legal, fair, right, and sustainable/environmentally sound.

Absolutism

The ethical theory, supported by Plato, stating that there are universal, unchanging moral standards against which the morality of an action is judged.

Relativism

The ethical theory that rejects universal standards, stating that moral truth is relative to particular cultures (descriptive) or right within each culture (normative).

Deontological Approach

Associated with Immanuel Kant, this approach is based on a sense of duty to universal laws where actions are right or wrong in themselves, regardless of consequences.

Teleological (Consequentialist) Approach

An approach, associated with John Stuart Mill, where the morality of an action is judged by its outcomes, believing that the end justifies the means.