Linked taxonomies structure

With my limited knowledge it appears as if the linked taxonomies structure is a Flat Hierarchy.

Can a setting in the code be changed to make it display hierarchical … ?

Attached image 1 : Shows I set a taxonomy “Western Cape” with a sub-taxonomy “Northern Suburbs” and two sub-sub-taxonomies “Bellville” and “Brackenfell”

however …

Attached image 2 : Shows the display of the sub-sub-taxonomies as a flat structure, and not indented as a hierarchy in the submission form.

Can a setting in the code be changed to make it display hierarchical … ?

Thanks
Henk