Why corruption negatively affects the intention to pay taxes?
Why corruption negatively affects the intention to pay taxes?

Author(s): Alexandru Fală
Subject(s): Fiscal Politics / Budgeting, Socio-Economic Research, Corruption - Transparency - Anti-Corruption
Published by: EXPERT-GRUP Centrul Analitic Independent
Keywords: corruption; taxes; shadow economy;
Summary/Abstract: Tax morality reflects people's propensity to pay taxes and strengthening tax morality can lead to diminishing the shadow economy. Tax morality is ”the moral obligation to pay taxes” and represents „people’s conviction that they contribute to the development of the society by paying taxes”. In fact, a higher level of tax morality contributes to diminishing the shadow economy. A number of researchers have empirically demonstrated the negative correlation between the tax morality and non-observed economy. It is also presumed that the use of non-coercive measures aimed at enhancing tax morality would have significant effects on increasing tax compliance.

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