Business Ethics (MANA 6320-01)
Dr. James underwood
March 28, 2012
Italian Tax Mores
By Arthur L. Kelly
This is a case about unusual Italian tax approach to boost up the tax revenues; lack of honesty found in Italian financial reporting. An Italian tax culture of getting more tax amount and the US banks struggle to deal with a greedy Italian tax authorities in the game of negotiation and bargain. Absolutes: Bribery is wrong.
Legal: Italian tax law was violated
Teleological: The outcome of the actions of Italian tax structure and practices were not good. Middleman i.e., Italian tax authority and commercialists were been profited rather than government or corporation. US bank was forced to pay the Texas shows in the initial tax assessment which is much higher than the original tax. Deontological: The only duty that existed was on the part of Italian tax assessment which is much higher than the original tax. Utilitarian: Italian tax authorities’ activities were not the most good for more people. In fact, there actions were egoistic in nature. Due to their dishonesty, corporate end up giving extra money as a bribe to them and Italian government loose the tax money as well doing negotiation and bargaining. Reasonable man: From a reasonable man standpoint, it would not be acceptable for the Italian tax authority and commercialist to receive the amount of busteralla. Conclusion:
Bribery violated an absolute. The Italian government generated an opportunity for the tax authority officers to make money for themselves. Corporations were forced to pay higher tax amount while government encouraged practicing understatement of revenues.