Abstract
The determinants of corruption have long been an important subject for research in the fields of economics and political science. Corruption was not deemed as a significant issue in the pre-democratic era and has become a serious issue later on. Corruption can be defined as “exploitation of public power to gain private gain.” It is a problem that occurs for various reasons and causes various effects. It may occur due to the occurrence of illegal activities in the political and economic system, as well as due to social and individual moral issues. Corruption has disruptive effects on the functioning of the economic, political, and social system. The aim of this study is to determine the duties of states towards a tax system to combat financial corruption. Corruption in the tax system affects the investment environment negatively, which slows down economic growth.
TopMain Focus Of The Chapter
Corruption is a versatile concept. This study examines corruption encountered in many activities of the state in the field of taxation. Corruptions in the taxation area, which is the most important source of income of the state, may increase depending on the features of the tax system. In this study, reforms to be applied in fighting tax corruption are evaluated.
Key Terms in this Chapter
Tax Administration: A unit of government that collect all tax revenues an efficient way.
Tax Payer: A taxpayer is a person or organization subject to pay a tax.
Tax Evasion: It is an illegal activity in which a person or company avoids to pay tax.
Bribes: Dishonestly persuade someone to act in one's favour by a gift of money or other inducement.
Corruption: Dishonest or fraudulent conduct by those in power, typically involving bribery.
Tax System: A type of official unity government system connected to unity government policy created to control, collate, manage tax law and tax legislation.
Tax Officer: Tax officers are civil servants, working for tax administration.