Tax Evasion and Financial Instability
Journal of Financial Crime
11 Pages Posted: 14 Aug 2018 Last revised: 24 May 2019
Date Written: 2019
This study explores the association between tax evasion and financial instability. The discussion also examines the effect of tax evasion for financial instability. The discussion shows that tax evasion can reduce the tax revenue available to governments to manage the economy, and to weaken its ability to promote stability in financial systems, while on the other hand, taxpayers who evade taxes feel they can use the evaded tax money to rather improve their own financial stability.
Keywords: Tax, Tax evasion, financial stability, financial crisis, tax avoidance
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