How Serious Is Tax Evasion? A Survey of Philippine Opinion

Abstract

The present study addresses the question, “How serious is tax evasion?” In order to arrive at an answer, it was necessary to compare the seriousness of tax evasion to that of other selected moral acts. World Values Survey data for the Philippines were used to compare tax evasion to 18 other moral issues. Respondents were asked to select a number from 1 to 10, where 1 = never justifiable and 10 = always justifiable. Claiming government benefits to which you not entitled was deemed to be the least serious moral act. Abortion was considered to be the most serious, followed by suicide, which might lead one to conclude that suicide is preferable to abortion. Tax evasion ranked 11th, slightly less serious than political violence or parents beating children, and somewhat more serious than the death penalty or terrorism. The present study is part of a much larger study that examines the ethics of tax evasion and bribery.

Keywords: ethics, tax evasion, tax morale, ranking

JEL Classification: A14, E26, H26, K40, K42, K49, O17, Z10