Abstract
This paper presents the results of two studies analysing the impact of procedural fairness and a sense of alienation on real tax payments in the public goods game. Study 1 showed that an unfair procedure of determining the rules of the game increases the frequency of tax evasion. In Study 2, tax evasion was associated with a sense of alienation induced in the subjects, understood as a conviction about the ineffectiveness of one’s own actions. The results of the studies presented in this paper indicate the importance of the treatment of taxpayers by the tax system as a factor infl uencing the propensity for tax fraud.
Highlights
This paper presents the results of two studies analysing the impact of procedural fairness and a sense of alienation on real tax payments in the public goods game
The findings showed that a sense of procedural fairness gained through participation in making the decision on expenditure had a significant impact on tax evasion
The aim of the studies presented above was to find out the impact of procedural fairness and a sense of alienation on the amount of tax payments in the public goods game
Summary
This paper presents the results of two studies analysing the impact of procedural fairness and a sense of alienation on real tax payments in the public goods game. Tax evasion may take various forms, from miscalculating the tax base, e.g. by failing to report a part of one’s income, misusing tax relief and deductions, purposeful miscalculating the amount of tax rebate for which the individual is not eligible, to failure to register a business or make advance tax payments on time In each of those cases, the taxpayer makes a conscious decision to evade their tax responsibilities and not to participate in the costs of running the state. New proposals to general tax law are more likely to be approved if they are preceded by extensive public consultations than if they are prepared without the willingness or attempt to learn taxpayers’ opinions (Niesiobędzka, Kołodziej, 2017)
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