Perception of tax evasion as a crime in Turkey

Abstract

Purpose – The aim of this study is to investigate Turkish taxpayers’ perception of the severity of tax evasion relative to other crimes and violations. Design/methodology/approach – A questionnaire survey was administrated to 475 Turkish self-employed respondents. One sample t-test and one-way analysis of variance methods were used for data analysis. Findings – The results of the study illustrate that tax evasion ranked 10th among the 21 offences surveyed. The results indicate that the average person views tax evasion as only somewhat serious. When compared to similar white-collar crimes, it ranked less severe than accounting fraud, while it was ranked higher than violation of minimum wage laws, welfare fraud and child labor laws. The results of this paper are important as they emphasize the fact that general public do not perceive tax evasion as a serious crime. This perception, allied to lack of enforcement efforts, has created an environment where certain individuals may not be afraid of cheating on their tax return. The study also endeavors to observe whether there is a correlation between the relative severity of a crime whether a victim is involved or not. Research limitations/implications – The main limitation arises from the sampling process used. The sample was drawn from only one city of Zonguldak, Turkey. The second limitation is related to the possibility of a participant misunderstanding the questions and terminology used in the survey. The third limitation is that this study only measures perceptions of the seriousness of 21 selected offences; hence, it may not be representative of the actual crimes. Originality/value – This is an important study in relation to Turkey. This is the pioneer study of its kind which investigates the relationship between tax evasion as a crime and other offences in Turkey. Another important aspect of this study is the fact that our results indicate a close correlation with similar studies carried out in the USA.

Does corruption cause tax evasion? Evidence from an emerging economy

“…Primarily, economists within the scope of both microeconomic individual economic behaviour and macroeconomic public finance have extensively studied the subject of tax evasion (Ritsatos, 2014). This is because, according to Benk et al (2015), tax evasion is one phenomenon that causes loss of revenue and reduces the effectiveness of the tax system.…”

“…From the above discussions, individuals perceive tax evasion as a crime albeit comparatively less heinous. In whichever way it is perceived, tax evasion leads to financial bleeding, which denies emerging economies of the much required tax revenues to achieve SDGs (Benk et al, 2015).…”

“…However, tax evasion is a major concern that seems to undermine these efforts and initiatives. Benk et al (2015) defined tax evasion as, "an illegal act or practice of failing to pay taxes which are owed to the state". Alleyne and Terry (2017) noted that tax evasion is a major challenge for governments the world over, with innovative and ever-changing schemes, which makes it increasingly difficult to regulate.…”

“…Most prior literature has examined tax evasion as a crime or corrupting activity (Rosenmerkel, 2001;Saracoglu, 2008;Bergman, 2009;Benk et al, 2015); however, the impact of corruption on taxation and hence economic development was not considered in the historical development of economic theories because according to Volejníková (2009), corruption was not perceived as an economic problem.…”

Different Cities, Different Genders, Different Perceptions of Tax Evasion

“…Although legally tax evasion is illegal, people in some countries still consider this action, not a serious crime. Benk et al (2015) found that the average person in Turkey views tax evasion as not a serious crime. They assess less tax evasion than accounting fraud.…”