Determinants of Tax Evasion Behavior: Empirical Evidence from Survey Data

International Business and Management, 6(2), 15-23, 2013

9 Pages Posted: 31 May 2015

See all articles by Gamze Oz Yalama

Gamze Oz Yalama

Eskisehir Osmangazi University

Erdal Gumus

Eskisehir Osmangazi University - Department of Public Finance

Date Written: 2013

Abstract

Tax revenues are major and important income sources for governments in most countries. Sufficient tax revenues make many government projects possible and help elected officials and politicians to remain in office longer if the government implements programs and projects demanded by the public. In today’s globalizing economic environments, there is increasing demand for a variety of public services and programs. However, the rate of increase in the tax revenues to finance these public services and programs falls short of the necessary public spending. The potential tax revenue of a country based on its legal or tax law is much larger than the tax revenues that are actually collected. Due to the lack of full tax compliance, government budgets are rarely balanced in most countries, and the gap between revenue and spending is increasing. The main question is why taxpayers evade taxes. To understand tax evasion, one can examine what factors cause taxpayers to evade taxes. If factors that affect tax evasion are identified, policies can be developed to prevent tax evasion.

The purpose of this study is to investigate factors related to tax evasion behavior using survey data collected in Turkey. Factor analysis and multiple regression techniques are employed. The results show that taxational and fiscal factors, economic factors, demographic factors, administrative factors, and other factors have statistically significant effects on tax evasion behavior.

Keywords: Tax evasion, Tax compliance, Individual behavior, Factor analysis

JEL Classification: H26

Suggested Citation

Oz Yalama, Gamze and Gumus, Erdal, Determinants of Tax Evasion Behavior: Empirical Evidence from Survey Data (2013). International Business and Management, 6(2), 15-23, 2013, Available at SSRN: https://ssrn.com/abstract=2612010

Gamze Oz Yalama

Eskisehir Osmangazi University ( email )

Meselik Kampusu
Atatürk Bulv.
Osmangazi, Eskisehir 24680
Turkey

Erdal Gumus (Contact Author)

Eskisehir Osmangazi University - Department of Public Finance ( email )

Meselik Campus
Eskisehir, 26480
Turkey
+222 239 37 50/1751 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
313
Abstract Views
940
rank
116,396
PlumX Metrics