Preface

Summary

This book seeks to collect and integrate economic-psychological research on tax compliance in general, focusing specifically on tax evasion. Research findings are integrated into a model based on two dimensions: originating from the interaction climate between tax authorities and taxpayers, the dimensions are defined by citizens' trust in authorities and the power of authorities to control taxpayers effectively. Depending on trust and the use of power, either voluntary compliance, enforced compliance or no compliance are likely to result. While economic studies on tax evasion have been growing immensely in the past decades, only about 10% of publications assume an economic-psychological perspective, i.e., one that focuses mainly on individual and social aspects of tax representations, decisions and behaviour. Thus, this book aims to fill the present gap by reviewing the accumulated economic-psychological knowledge and mapping the field.

After a brief introduction, the increasing concerns with the complexity of tax law and the growth of the shadow economy are described, and definitions of tax compliance, avoidance and evasion are presented. As a psychologist, I choose to approach tax behaviour from an individual and social-psychological perspective. The available research focuses on individual and the collective (social) representations of taxation as well as on tax morale, and decision-making. I have chosen to afford the majority of attention to income tax, with special attention to self-employed taxpayers' behaviour. More recently, interest has been shown in tax authorities' orientations towards taxpayers and the interactions between tax officers and taxpayers.