Ethical issue in Tax avoidance : A Critical study

Abstract

The objectives of this research were to study social, business, and taxation relations, to study tax avoidance, and to analyze ethical issues on tax avoidance based on Thomas Hobbes, Immanuel Kant and John Stuart Mill. This study was a qualitative research.

The results of this study were found as follows. Business has a social relationship with the duties and responsibilities based on law is taxation. Tax avoidance violate that the duties based on law that confirms justice, equality and public benefit of taxation. Thomas Hobbes presents the intention in tax avoidance is against justice and equality of the spirit of tax law and  the morality. Immanuel Kant presents tax avoidance is against legal duties share the same points with moral duties. John Stuart Mill presents tax avoidance is against the utilitarianism rules that impacts the greatest happiness principle.