The Ethics of Taxes
The lesson "The Ethics of Tax Systems" explores the financial, ethical, and social impacts of tax evasion in Canada, while also integrating a practical English grammar exercise.
Tax Evasion in Canada
The primary focus of the material is the growing trend of Canadians "cheating the taxman" by paying for services "under the table" to secure a better deal. A Leger survey highlighted in the lesson reveals that Canadians are highly frustrated with constantly being taxed on everyday purchases and home renovations.
Key survey findings:
- 58% of people admitted they would agree to a cash deal to save money.
- 53% of respondents acknowledged that avoiding sales tax is wrong — a significant increase from 28% in 2012.
- The construction and service industries are identified as the worst sectors for failing to declare taxes.
The Contradiction
The lesson points out a clear contradiction in public behavior: people want the benefits of government services — like healthcare, roads, and education — without wanting to pay the taxes required to fund them.
Consequences of Tax Evasion
Evading taxes to save money in the short term has strict long-term consequences, specifically by reducing a person's future Canada Pension Plan (CPP) retirement income. Canada's underground economy is estimated to be worth almost $41 billion annually, causing the government to miss out on billions of dollars in revenue.
In response to this massive loss, the government has established tip lines that receive:
- 30,000 calls a year regarding tax-evading individuals and small businesses
- 900 calls concerning wealthy overseas accounts
Grammar Component
On the language instruction side, the lesson features a grammar component that teaches students how to properly use auxiliary verbs (to be, to do, to have) to construct questions.
Conclusion
Ultimately, the lesson provides a grounded look at how everyday citizens attempt to bypass the old adage that the only two unavoidable things in life are death and taxes.