Written Report: Prepared by: Fidelin, Jaya

Eugenio, Meryll B.

Title: Moral Theories and Mental Frames of Taxation.

WHAT IS TAX?
TAX- Is the life blood of a country. Through it, a nation is borne into civilization.

Taxes are indeed to ensure general welfare such as:

 Security - Job

 Education -Protection

 Social services -Health assistance

 Taxes without good governance and accountability is open to abuse and

corruption.

 In the name of corruption, is not much about illegality but rather , immorality

 Understanding tax morale is important

 Government is the one that collects and manage tax revenues.

 Taxes are used to finance the government’s expenditure like services,

infrastructure, socio-economic and political programs.

Basis of Taxation.

1. As Necessity

- The government cannot exist and function without means to pay for its expenditure.

2. Reciprocal duties of protection and support between the state and its inhabitants.
There are two other aspects taxes should also be viewed, its social and moral aspects:

The concept of social- Justice comes into play. Social justice brings forth what is

morally required for us to do, and what is morally expected us to be.

TWO CENTRAL CONCEPTS THAT DEFINE OUR MORAL UNDERPINNINGS

1. The Morally Right action (what we ought to do)

2. The Morally Good ( What we ought to be)

 Morality is exemplified by our Acts and by our character.

These means for us to understand our moral obligation to our society

TAX AS MORALE OBLIGATION

 There are certain values and goods which can be attained only through

“organization” such as economic goods, cultural goods, peace and order

 To effect these common goods, an authority is needed Legal power and Physical

power to exact obedience from citizens in view of common goods.

 Tax as moral obligation is linked to our understanding of the common goods as

the end of taxation.

 It is always viewed that taxes are means to flourish society but it is not only a bad

government that may hinder this objective but also the distorted values of an

individual (Tax payer)

Taxes are believe to address social inequalities, to insure fair taxation there are

principle to be strictly observed such as:

 Transparency.
  Democracy.

 Social commitments

 Responsibilities.

TAX AVOIDANCE

 Tax Avoidance- is the process whereby an individual uses tax planning so as to apply all

exemptions and deductions provided by tax laws to reduce taxable income.

 Tax Avoidance lowers tax bill by structuring transactions so that the largest tax benefits are

reaped. It is legal and extremely wise

Tax Evasion

 Is the illegal practice of not paying taxes, by not reporting income, reporting expenses

not legally allowed, or by not paying taxes owed.

 Tax payer deliberately misrepresenting the true state of their tax liability and includes

dishonest tax reporting.

Tax Morale

 Is referred to a as the motivation of a country’s citizens to pay taxes, in addition to legal

obligation that comes with it.