Taxation - 3_culture

Question 1

Defining the term “culture of taxation”

Answer 1

The culture of taxation is a relationship between taxpayers and tax collectors in a tax system

Question 2

Tax compliance

Answer 2

The most desired behavior

Question 3

Tax avoidancce

Answer 3

Tax avoidance describes legal attempts to reduce the amount of tax that is payable

Question 4

Tax evasion

Answer 4

Tax evasion refers to the illegal acts of taxpayers to decrease their tax liabilities through some form of fraud

Question 5

Tax morale

Answer 5

Tax morale is an intrinsic motivation to pay taxes

Question 6

Ideas that affect tax morale

Answer 6

Fairness, trust, economic class - taxpayers with higher income realize a greater money return by evading taxes - lower income taxpayers do not tend to take the risk of evading taxes
education - the higher the degree of education level the higher the degree of tax non-compliance

Question 7

Conclusion

Answer 7

The tax system should fit the general culture and ethics in the country
The raise of taxes could increase the tax evasion
The simplification of the tax system is reducing the tax evasion
In some cases it is better to try to raise the trust in the government then raise the taxes