“At the firm, we’ve got a new way of looking at tax issues. It’s called ‘risk management,’

and, in your case, John, it means that we can be more aggressive than in the past. In the past, when there was an issue open to interpretation, we advised you to adopt a practice that was relatively safe, so that you would not get into trouble with the tax department. The thinking was that it would be better not to attract attention because that would lead to more audits and more difficult negotiations of questionable issues. We noticed, however, that there are fewer tax auditors now than in the past, particularly in remote areas, so it makes sense to take more chances than in the past—if you are audited, you can always pay up, anyway. It just makes good business sense to take advantage of all the possibilities open to your competitors. More and more of our clients are moving into this area of risk management, and you should think about it too.”

Question:-

1. Is this new practice of risk management ethical?