Systemization and Review of Non-Monetary Costs of Tax Evasion

43 Pages Posted: 4 Nov 2020

Date Written: September 14, 2020

Abstract

The pervasive problem with tax evasion of individuals was commonly examined by analyzing the monetary costs of tax evasion (e.g. audit probability, fine and tax rate). Only recently, the analysis has been expanded to non-monetary costs of tax evasion. This paper systemizes this area of research and reviews its findings including latest developments. In particular, the paper reviews seven sources of non-monetary costs of tax evasion, namely social norm, trust, fairness, participation rights, complexity and knowledge, patriotism, and moral emotions. Finally, I discuss interdependencies between these sources of non-monetary costs of tax evasion on the one hand and between non-monetary and monetary costs of tax evasion on the other.

Keywords: Tax Compliance, Literature Review, Non-Monetary Costs of Tax Evasion, Tax Morale

JEL Classification: C91, C93, D90, H26, K42

Suggested Citation

Kölle, Tobias, Systemization and Review of Non-Monetary Costs of Tax Evasion (September 14, 2020). Available at SSRN: https://ssrn.com/abstract=3692399 or http://dx.doi.org/10.2139/ssrn.3692399

Tobias Kölle (Contact Author)

University of Cologne ( email )

Albertus-Magnus-Platz
Cologne, 50923
Germany

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