ABSTRACT
We have seen that the main goal of GAAP is to provide precise information (to the extent that this is possible) to relevant parties concerning the financial condition of the taxpayer.1 We have also seen that in order to achieve this goal GAAP is guided by a set of principles for quantifying and measuring the results of business activity over a certain timespan. The goal of tax laws is different, namely, to collect monies to provide public goods.2 However, it is accepted tax policy that it is not enough for tax to be collected; the tax must be “just” or “fair”.3 In this context, it seems that the aspiration to achieve “justice” (“fairness”) in tax collection is common to the UK,4 the US5 and the Israeli6 tax systems. In light of this, over and above the particular tax legislation existing in each country, we will review below how these tax systems seek to uphold a number of minimum requirements in order to achieve “fairness”.7
