MANAGEMENT

Detailed explanation-1: -It is the principle for which all the taxpayers will cooperate with the tax system, filing an honest and accurate annual return autonomously. Voluntary compliance does not mean that there are no tax-related laws or rules.

Detailed explanation-2: -In The Wealth of Nations (1776), Adam Smith argued that taxation should follow the four principles of fairness, certainty, convenience and efficiency. Fairness, in that taxation, should be compatible with taxpayers’ conditions, including their ability to pay in line with personal and family needs.

Detailed explanation-3: -What Is Voluntary Compliance? Voluntary compliance refers to the principle that citizens will cooperate with their government by filing honest and accurate annual returns. The U.S. income tax system operates under this assumption, though not without checks and balances.

Detailed explanation-4: -Voluntary taxation You are responsible as an individual taxpayer to calculate what you owe. You’re expected to voluntarily comply with the tax code by reporting what you owe to the government and paying the entire amount that you owe under the law.