Factors Shaping Tax Morale in Some European Countries

Ngamba, Divin Eyir and Malatyinszki, Szilárd and Kálmán, Botond Géza (2023) Factors Shaping Tax Morale in Some European Countries. In: XV. Pécsi Pénzügyi Napok : I. Pénzügy és Számvitel Nemzetközi Tudományos Konferencia = XV. Finance Days in Pécs : I. Finance and Accounting International Scientific Conference. Pécsi Tudományegyetem Közgazdaságtudományi Kar, Pécs, pp. 129-139. ISBN 978-963-626-211-2

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Abstract

Purpose: in our time, the accelerating economic globalisation, and the profit-oriented market approach, as well as the consumer society, increasingly raise the question of the sustainability of the current situation. The solution is partly the responsibility of the companies shaping the situation, and partly of the state. Taxes, for example, cover the necessary state resources. In our work, we examine the factors that determine the willingness to pay taxes in several countries. Methodology: we selected our data from the publicly available surveys of the Deloitte company in five European countries and further research available in the literature. We were primarily interested in what kind of facilitations and discounts the examined countries try to increase tax incentives. Results: the tax morale in examined shows significant differences. Some of these are of historical-political origin: in the countries of the former communist bloc the distrust of the authorities. In Hungary, where the fiscal policy based on the theoretical rationality of taxation, the consequence is the decreasing trend of tax evasion. In traditional democracies, the historical factor has no role at all, the tax morale is rather influenced by the demographic characteristics of the individual. The cultural environment also has an effect. In Sweden, the tax policy is for the people and not the people for the taxes. The tax office is citizen-friendly, the tax law is transparent, and Swedes believe that the government uses their paid taxes to increase their well-being. In Italy, tax evasion is a widespread phenomenon. The reason for unfavorable tax morale is primarily the inefficient spending of public funds by local governments. Conclusions: the factors shaping tax morale vary from country to country based on geographical, cultural, and individual characteristics. Taking them into account is essential for the development of an effective tax policy.

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