SOCIOLOGICAL COMPONENT OF TAX EVASION

Abstract

The article deals with the problem of tax evasion from the point of view of influence on the deviant behavior of taxpayers of moral and ethical characteristics of the individual. The influence of external economic and political factors is also investigated. In the research it is emphasized that the conscious choice of an individual has the main influence on the decision on violation of tax legislation. The influence of various economic and political factors on the choice of tax behavior of economic entities also takes place, but to a lesser extent. The scope of the Ukrainian shadow economy is also explored. The article shows the role and size of tax evasion in shaping theoretical GDP. It is analyzed that the level of the shadow economy is growing in dynamics. The largest amount of tax evasion is observed in economically developed regions. This tendency is explained by the higher economic benefit from tax evasion. In terms of economic activities, the most violations of tax legislation are observed in those activities that are more difficult to control. These activities include construction and retail. The main way to tax evasion is to conceal real income. This is due to the selfishness of the owner of the income generated by the work. This is also due to the lack of confidence in the legislative and executive bodies. Lack of trust in the authorities leads to a lack of confidence in the targeting of taxes and their useful spending. Lack of legislative regulation of labor relations with employees is also one of the ways of evasion that reduces budget revenues. Paying salaries «in envelopes» remains a significant problem in Ukraine. Most taxpayers fear grave consequences in the event of penalties for breach of tax law. Thus, measuring and understanding the causes of taxpayers' deviant behavior can help the government think about ways not only to punish, but also to identify possible ways to get a business out of the shadows. An alternative way of reducing the shadow economy is to set up public relations with fiscal authorities. Understanding the motives behind the interaction of taxpayers with the shadow economy can help with tax policy development. The article deals with the problem of tax evasion from the point of view of influence on the deviant behavior of taxpayers of moral and ethical characteristics of the individual. The influence of external economic and political factors is also investigated. In the research it is emphasized that the conscious choice of an individual has the main influence on the decision on violation of tax legislation. The influence of various economic and political factors on the choice of tax behavior of economic entities also takes place, but to a lesser extent. The scope of the Ukrainian shadow economy is also explored. The article shows the role and size of tax evasion in shaping theoretical GDP. It is analyzed that the level of the shadow economy is growing in dynamics. The largest amount of tax evasion is observed in economically developed regions. This tendency is explained by the higher economic benefit from tax evasion. In terms of economic activities, the most violations of tax legislation are observed in those activities that are more difficult to control. These activities include construction and retail. The main way to tax evasion is to conceal real income. This is due to the selfishness of the owner of the income generated by the work. This is also due to the lack of confidence in the legislative and executive bodies. Lack of trust in the authorities leads to a lack of confidence in the targeting of taxes and their useful spending. Lack of legislative regulation of labor relations with employees is also one of the ways of evasion that reduces budget revenues. Paying salaries «in envelopes» remains a significant problem in Ukraine. Most taxpayers fear grave consequences in the event of penalties for breach of tax law. Thus, measuring and understanding the causes of taxpayers' deviant behavior can help the government think about ways not only to punish, but also to identify possible ways to get a business out of the shadows. An alternative way of reducing the shadow economy is to set up public relations with fiscal authorities. Understanding the motives behind the interaction of taxpayers with the shadow economy can help with tax policy development.