Factors Affecting Tax Evasion Using Structural Equation Techniques - The Role of Tax Knowledge as a Moderator

Document Type : Scientific paper

Author

Assistant Prof, Accounting Department, University of Mazandaran, Babolsar, Iran

Abstract

Tax, as one of the most important financing Sources of government, play an important role in economic growth and income distribution and depending on their level of development and economic structure. Given the role of taxes in the economy, the phenomenon of tax evasion, which is derived from the lack of professional ethics, as a counter-value can be a serious threat to tax culture and, consequently, the realization of social welfare, and for this reason, the need to identify the causes and intensification of tax evasion due to neglect of ethical aspects and provide solutions in this regard is worth discussing. Investigating the phenomenon of tax evasion and identifying important factors in its formation helps to provide the most appropriate strategies and infrastructure to prevent and reduce it. Tax evasion has not only economic roots, but also the role of social and institutional factors in its formation.
Therefore, the main purpose of this study is to investigate the factors affecting tax evasion by considering the moderating role of tax knowledge. The statistical population of this study was taxpayers of various tax occupations during 2019 and the first half of 2020. Eight cases affecting tax evasion were examined according to Fisher (1992) Modified 4-factor questionnaire. Based on a questionnaire distributed among taxpayers, results show that the variables of non-compliance (Tax rate and income level) and tax system (Probability of discovery, tax offenses, complexity of the tax system and comprehensible government roles) have a positive and significant relationship with the tax evasion variable, While the influence and attitude of peers has not been an effective factor in tax evasion. Also, tax knowledge, as a moderating variable, affects the relationship between significant factors and tax evasion.

Keywords

References

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Macroeconomics Research Letter
Volume 16, Issue 31
August 2021
Pages 13-36

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History

  • Receive Date: 03 November 2020
  • Revise Date: 19 April 2021
  • Accept Date: 12 May 2021

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