The impact of budget transparency on tax compliance

Tatyana Zvereva,Marina Krasnoplakhtich,Angelika Musaelyan,Antonina Pavlyukova,Pavel Taranov,A Zheltenkov,A Mottaeva

doi:10.1051/e3sconf/202128407029

Abstract

The article analyzes the factors influencing tax evasion: the value of gross domestic product per capita, tax burden, corruption and openness of information on the use of budgetary funds. The correlation model includes the analysis of two groups of indicators. The first group is indicators of the individual level: education, socio-economic status, attitude to religion, gender, etc. The second group is indicators of the global or national level: GDP per capita, tax burden, the level of corruption in the country, the degree of financial transparency of public finances. The results of the study confirmed the hypothesis that law-abiding tax behavior is largely determined by the openness of information about the use of tax revenues by governments. Disclosure of information on the use of budget funds can become a powerful tool for strengthening the understanding of the legitimacy of the state tax policy, as well as act as a preventive measure to overcome existing facts of tax evasion. Increasing the transparency of public finances will make it possible to reproduce a new level of tax culture, to form an internal agreement of citizens with the fiscal policy of the state.

Highlights

Tax evasion issues have been very relevant since the inception of the tax system
If we measure tax morality by assessing the deviation of the actual from the expected level of tax evasion, this method will allow us to obtain average information about the level of tax morality in a particular country [11], which is sufficient for the purposes of our study
Disclosure of information on the use of budget funds can be a powerful tool in strengthening understanding of the legitimacy of government tax policy

Summary

Introduction

Tax evasion issues have been very relevant since the inception of the tax system. The factors that determine law-abiding tax behavior are economic, institutional, political, but social and moral factors, as well as the level of civil liability of the taxpayer. A wide range of moral and ethical attitudes that form the individual relation of a taxpayer to the obligation to pay taxes is tax morality. This term is described as combining noneconomic motivational attitudes of the taxpayer [1]. The problems of the effectiveness of public administration, trust in government, the fight against corruption and their impact on tax relations have attracted the attention of many scientists [4, 5]

Methods

Results

Conclusion