THE INFLUENCE OF TAX FAIRNESS ON TAX EVASION IN DEVELOPED COUNTRIES

Tax avoidance and evasion have been widely discussed among economists and politicians in the Czech Republic in recent years. The debate has resulted in introduction of Electronic Evidence of Sales, effective since 2016. However, the tax evasion may be decreased also by other, and probably more effective tools. The aim of this paper is to determine how tax fairness manifests itself in the society of developed countries. The basic hypothesis of this study argues that if the tax burden is relatively high and perceived as unfair by the society, it will cause a higher rate of tax evasion, and vice versa. The hypothesis is confirmed on the basis of a dynamic panel data analysis for OECD countries in 2003-2012. We conclude that national governments should try to increase the fairness, even while preserving higher rate of taxation, which means that they should try to change the perception of taxation by the public, e. g. by explaining them why the system is set in a way it is, but also should they try to remove the elements of tax system that are not in accordance with the fairness principle applied.