Behavioural Approaches to Tax Collection: the Case of Slovakia

Abstract

Research studies demonstrate respect for the normative approaches to paying taxes, but they are extended by behavioural aspects affecting the tax liability of the taxpayer. A taxpayer’s decision to pay the tax is influenced, for example, by the social environment in which the entity operates, the moral standards of a group affecting attitude of the taxpayer to paying taxes, the degree of tolerance to tax evasion and to combating corruption, and so on. This confirms the relevance of both repressive as well as preventive state measures to collect taxes and eliminate tax evasion and fraud. The effective tax collection can be rather achieved by building mutual trust between the taxpayer and tax administrator using targeted instruments aimed at the voluntary payment of taxes on time and in the correct amount. On the basis of the questionnaire survey, the aim of the paper is to find out, analyse and evaluate the attitudes of the respondents to the effectiveness of tax audits in Slovakia, to the adjustment of the income tax base by means of legal or illegal instruments, as well as their attitudes towards fraud on VAT. The analysis of respondents’ attitudes regarding the illegal treatment of income tax and VAT pointed to relatively high tax discipline of taxpayers. The respondents expressed a different opinion on the effectiveness of tax audits in Slovakia. In their view, tax audits reveal to a lesser extent the illegal activity of taxpayers. Especially this knowledge highlights the importance of building a fair relationship between the taxpayers and tax administrator using some of the behavioural approaches outlined in the paper.