The fundamental principles of business ethics and corporate governance, such as honesty, integrity, and fairness, are compromised by tax evasion. Companies that engage in tax evasion not only violate the law but also undermine the trust of stakeholders, including customers, employees, investors, and the public. This unethical behaviour compromises the company's reputation and can have significant legal and financial consequences. It serves as a reminder that a positive corporate image and sustainable success are built on the foundation of ethical practices. Adhering to tax laws is crucial to promote accountability, trust and keep the company viable over the long run.
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