Conceptualizing Tax Evasion and Tax Compliance Strategies

Abstract

Tax evasion poses significant challenges to governments worldwide. It leads to substantial revenue loss and undermines the efficacy and integrity of tax systems. In retrospect, understanding the drivers of tax evasion and developing effective tax compliance strategies have become a necessity for policymakers, researchers, and social thinkers alike. This paper foremost delves into the underlying drivers for tax evasion behavior. This includes examining the role of moral suasion, penalties, new technologies, artificial intelligence, and block chain technology to improve probabilities in shaping taxpayers’ decisions to evade taxes. The paper presents an interdisciplinary analysis that synthesizes recommendable insights from economics, psychology, sociology, and social science to comprehensively explore the complexities of tax evasion and propose innovative compliance strategies. This interdisciplinary analysis contributes to the ongoing discourse on tax evasion and compliance by presenting a comprehensive framework that integrates economic, psychological, sociological, and technological perspectives.