Difference Between the Tax System - the United States vs Italy Case Study

Difference Between the Tax System - the United States vs Italy - Case conceive ExampleThe author notes that the assumption by the gross authority is true as organizations understate their revenues in readiness for bargaining with the tax authority in the actual tax payable. The aim of the approach is to earn more tax from taxpayers, than the get along that the taxpayers would pay based on their returns. The approach has further been integrated in Italys corporate culture such that organizations would underestimate their income, while filing tax returns, in order to gain ground for negotiating the final payable amount (Brooks and Dunn, 2009).The revenue authority also expects higher tax payments than organizations reported values and final payable values establish benchmarks for future tax payable amounts. This approach, harmonize to the writer, works well with Italian firms or foreign firms that can adjust to the Italian practice. Those that are rigid to follow legal and moral prov isions of their homegrown countries, however, find it hard to cope with tax demand in Italy. The author also notes that the revenue authority is willing to intimidate taxpayers to adjust to the system and mash the negotiation approach. The example of an American general manager explains this as he receives intimidating notices following his failure to embrace the negotiation approach. When he finally visits the revenue authoritys office, they inform him of the need for dialogue (Brooks and Dunn, 2009).I agree with the writers proposition that the Italian culture of tax collection is different from approaches in jurisdictions, such as in the United States, and that such differences are likely to create challenges to stakeholders from the other jurisdictions. The existence of differences in other aspects of culture crosswise nations informs my support for the authors proposition. While some cultures value collectivism, other value individualism. Similarly, while culture in some nat ions allows for informal appreciations during or aft(prenominal) contract formations, other cultures may consider such advances immoral.