Abstract
This paper highlights the timeless failure of the tax system in Greece despite its continuous reform, addressing the study of tax evasion phenomenon with a different approach. The study aims to identify socio-psychological characteristics and attitudes that affect the study of tax behavior using the mathematical research of linear models for tax policy and to assess tax behavior with simulation models, where state reform, tax reform and fiscal restructuring—along with social consensus, transparency and fair taxation—are control parameters. The survey involved 320 taxpayers from the entire Greek territory. Mathematical study using linear analysis showed that a linear model integrates fiscal, social and psychological factors are significantly better in representing tax behavior, lowering tax evasion. Specifically, a main futures model is bettering the tax behavior (R2 = 0.237) improving the tax revenues. These results plainly infer the conclusion that tax behavior in Greece might affected by fiscal, social and psychological factors.
Highlights
Tax evasion remains of the biggest challenges facing the Greek society
The study aims to identify socio-psychological characteristics and attitudes that affect the study of tax behavior using the mathematical research of linear models for tax policy and to assess tax behavior with simulation models, where state reform, tax reform and fiscal restructuring— along with social consensus, transparency and fair taxation—are control parameters
The development of tax planning simulation models achieves the redesign of the tax system in Greece with fiscal and socio-psychological characteristics, improving the overall tax collection [86]
Summary
Tax evasion remains of the biggest challenges facing the Greek society. The illegal evasion of taxes is a major economic and social problem [1] because it bereaves the public of social resources that would improve the country’s standard of living. The recent protracted economic austerity policy, combined with additional taxes [2], in association with the financial solidarity of the European Union and the International Monetary. As seen from the table the Greek economy demonstrates a relatively large non-taxed economy (Shadow Economy). The proportion of GDP taken in tax revenue is higher than the European average [7].
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