Tax Evasion as an Institutional Trap

Abstract

The article is devoted to the study of tax evasion and the identification of the causes of this phenomenon. The points of view of various authors on the reasons leading to tax evasion are considered. The objectives of the study are to develop approaches to assessing the extent of tax evasion in Russia and identify factors contributing to the growth of tax evasion. The hypothesis of the study is the assumption that the socio-economic conditions have a negative impact on the functioning of the institute of taxation, leading to distortion of the conditions of its activities and contributing to the growth of tax evasion, which becomes an institutional trap of economic relations. In the course of the research, an institutional approach was used to study the regularities of the functioning of tax relations. To assess the factors influencing the dynamics of tax evasion, the method of correlation analysis was used. According to the results of the study, a strong direct statistical relationship was established between the level of the tax burden and the dynamics of evasion of VAT for goods sold in Russia — the correlation coefficient was 0,9388. A strong direct relationship was found between the dynamics of the total amount of unpaid taxes and the tax burden (correlation coefficient — 0,7442). It is revealed that tax evasion is not an independent social institution, but it is closely related to the institutions of taxation and income. In Russia, however, conditions have created an institutional trap for tax evasion.