Is Tax Evasion Never Justifiable?

Abstract

Discussions about tax evasion often assume that tax evasion is not desirable. Thus, this paper analyses people’s value regarding tax evasion using the World Value Surveys. Our data analysis shows that tax morality did not fall significantly in the OECD and developing countries. On the other hand, there is a decline in tax morality for the former Soviet Union and Central and Eastern Europe countries. Furthermore, we find a significant correlation between tax morality and the size of shadow economy. Finally, we focus on constitutions, showing the importance of a legitimate political process.