The Relationship between Culture and Tax Evasion across Countries: Cases of the USA and Germany

The purpose of this study is to compare the national culture for the Germany and the United States (US) and to analyze how the national culture affects the perception of tax evasion. This research analyzes the different types of tax evasions, the tax audit, and criminal investigation approaches in the USA and Germany. This study identifies important gaps in academic and practical understanding of tax evasion, and provides suggestions for revision of tax audit in the USA and Germany. The article provides a greater understanding of the impact of national culture on tax evasion and offers policy recommendations for the improvement of tax audit.