Tax Evasion As a Crime: A Survey of Perception in Kosovo

Abstract

The goal of this paper is to explore the perception of Kosovo’s citizens of the severity of tax evasion relative to other crimes and abuses. Perception of tax evasion may somewhat clarify the degree of rebelliousness with the tax laws. Using data from a self-administered survey and a personnel structured interview, the results of mean and comparative analysis will be examined to show where the tax evasion is ranked in Kosovo in the list of fifty listed crimes. Studies, conducted about the perceptions of tax evasion as a crime, have suggested that the tax non-compliance environment has been created from the perception of the taxpayers towards tax evasion as a non-serious crime. Consequently, the degree of non-compliance with the tax laws could be explained somewhat by the perception towards the tax evasion. And, it is obvious that the public's perception of the severity of a crime has important implications for society. However, those studies are inconclusive in explaining the variability of the perceptions towards tax evasion as a crime. Despite that fact that these researches conducted on this area in US, Australia, and Malaysia are a few, a study about the perception of tax evasion in Kosovo does not exist. Evidence on tax evasion perception found in the developing countries may not be generalized to the context of Kosovo because of the differences in the environmental factors such as economy, business, culture, and regulations. Consequently, differences in the environmental factors are expected to cause differences in the perception. The results of this study should be useful to business and government representatives in Kosovo and elsewhere in the Balkans or wider.