Multi-Criteria Decision Analysis of Socio-Economic Factors of Tax Evasion
Multi-Criteria Decision Analysis of Socio-Economic Factors of Tax Evasion

Summary/Abstract: The aim of the article is to evaluate the riskiness of selected socio-economic factors that impact tax evasion and determine the ranking of selected EU countries according to the severity of the risk of tax evasion. Given that the main causes stem from the country's tax system, the concept of the tax system and its mechanisms are influenced by the tendency of taxpayers to comply with tax rules or, on the contrary, they are the reason for their non-compliance in the form of tax avoidance and tax evasion. The impact of selected factors (namely tax burden, tax relief, unemployment and the complexity of the tax system)on tax evasion is analysed in the article. Data is used from publicly available Eurostat, OECD, SBA Agency, World Bank and Price Water House Coopers databases and sources. The data obtained are then analysed using multi-criteria decision analysis. The results reflect the overall pattern of tax systems of selected EU countries with a focus on personal income tax, corporate tax and indirect taxes, in terms of the tax system's riskiness related to tax evasion.

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