Determinants of Taxpayers’ Attitudes Towards Tax Avoidance: An Empirical Study

Tax avoidance continues to pose a considerable challenge for fiscal systems across the globe, highlighting not just legal and financial aspects but also the psychological and institutional contexts in which taxpayers operate. This research explores the various factors that shape taxpayers' perspectives on tax avoidance, drawing insights from the responses of 300 individuals. The results indicate that a lack of trust in government and feelings of unfairness regarding the tax system are the most significant factors influencing positive attitudes towards tax avoidance. Societal expectations that promote avoidance play a significant role in its widespread acceptance. On the other hand, a high level of tax morale and robust enforcement mechanisms can diminish these attitudes, although the impact of enforcement is less significant when compared to the influence of trust and fairness. Regression analysis reveals that almost fifty percent of the differences in taxpayer attitudes can be attributed to these factors, with trust in government standing out as the most significant influence. The research indicates that enhancing the credibility of institutions, promoting fairness, and bolstering tax morale are more impactful approaches to diminishing tax avoidance attitudes compared to depending exclusively on penalties and audits.