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: Suggested Citation