Tax compliance during fiscal depression periods: the case of Greece

Abstract

Purpose Governments count on tax revenues in order to finance their fiscal and social activities. The purpose of this paper is to analyse the citizens’ conception of tax compliance and examine the factors affecting tax behaviour. Design/methodology/approach This survey was conducted through a stratified sample and questionnaires consisted of closed-ended questions. A linear regression and a series of reliability tests including an analysis of variance were conducted with IBM Statistical Package for Social Sciences. Findings The majority of the respondents demonstrate a positive perspective towards tax compliance and tax administration employees that inspire it. However, while the fairness of the tax system is evident, findings indicate a deeper issue of social and behavioural influences, including the characteristics of tax administrative employees and tax morality. Research limitations/implications The findings are subject to over- or sub-representation, since the sample derived from groups whose occupations feature strong tax compliance. The study was conducted in Greece, and it is possible that the results can be generalised to developing countries with similar economic environments and fiscal circumstances. Practical implications Non-economic factors affect tax behaviour and the formation of modern tax strategies. This survey enables governments to improve tax compliance rates and increase tax revenues. Fiscal depression tends to decrease state revenues. Tax compliance factors should be taken into account through tax decision-making processes and ensure efficient tax collection. Originality/value This paper furthers the existent literature and deepens in non-economic factors of morality, revealing tax behaviours instigated by reasons beyond tax unfairness.

Taxation efficiency and accounting assisted transparency, insight into a European framework

“…On the contrary, a big percentage considers that inadequacy in matters of human staff is the real problem behind lack of trust to the ability of audit techniques imposition and thus success of transparency. The aforementioned seem to be confirmed by respective studies such as the one of Lois et al (2019).…”

“…In contrast however, they do not believe that the problem stems from regulations or tactics. On the contrary, the biggest percentages believe that inadequacy in matters of human staff is imperative in matters of transparency (Lois et al, 2019).…”

Do public governance and patriotism matter? Sales tax compliance among small and medium enterprises in developing countries: Jordanian evidence

“…This is particularly true as tax revenue is a key component of the gross domestic product (GDP) and, as such, nations need to develop more effective means of collection (Umar and Masud, 2020;Bird et al, 2008). Thus, governments depend on tax revenues to cover their social and fiscal activities (Alshira'h and Abdul-Jabbar, 2020;Lois et al, 2019). In the current theoretical and empirical studies, developing economies are largely ignored with respect to tax behaviour (Fauvelle-Aymar, 1999).…”

Role of Revenue Mobilisation in the Growth and Development of Economy: A Case Analysis of Greece

“…The most important part would have been the creation of electronic currency, for domestic use, and that would be a step in the digital economy. As stated by Lois et al (2019), the public sectors, on the other hand, could have raised pensions in order to help the public of the humanitarian needs by creating credit accounts for electronic currency.…”

“…Though the GDP could not be predicted, the troika observed the impact on the environment due to the crisis. According to Lois et al(2019), there will be an increase in the emissions with the growth in the economy and GDP of the country, and it is predicted that real growth would spread out till 2015.…”