The determinants of tax evasion: empirical evidence from Serbia
DOI:
https://doi.org/10.52575/2687-0932-2021-48-3-514-527Keywords:
tax compliance, tax evasion, determinants of tax evasion, SerbiaAbstract
Fiscal authorities globally face tax evasion as a complex problem. Since there are no precise parameters to measure the factors influencing tax evasion, there is a variety of different interpretations among authors researching this domain of fiscal policy. Reviewing the thematic literature, we found that tax evasion factors have not been thoroughly examined comparing the standpoints of individuals and legal entities. This paper analyzes the attitudes and perceptions of individuals and legal entities on tax evasion in the Republic of Serbia, as well as the differences between them. Identification of the differences in the determinants of tax evasion by the economic entities enables the creation of the optimal design of anti-evasion policy. Based on the categorical data collected, we applied the statistical technique for investigating the relationships (connections) between the variables to analyze the differences in the illegal neglect of tax liability between individuals and legal entities. This approach provided a better insight into social groups which are more prone to tax evasion. Based on the results obtained using one of the most commonly used non-parametric tests in empirical research, we can conclude that there is no statistically significant difference in the responses between legal entities and individuals on attitudes in the domain of evasive behavior in the Republic of Serbia. The research results showed that economic factors have the greatest repercussions on the evasive behavior of both individuals and legal entities in the Republic of Serbia.
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