The aim of this study is to build on the work of Riahi-Belkaoui (J Int Account Audit Tax 13: 135–143, 2004) and systematically examine on a cross-country basis, many of the key determinants of tax evasion identified by Jackson and Milliron (J Account Literat 5: 125–165, 1986). Based on data for 45 countries, the regression results show that non-economic determinants have the strongest impact on tax evasion. In particular, complexity is the most important determinant of tax evasion. Other important determinants of tax evasion are education, income source, fairness and tax morale. Overall, the regression results indicate that the lower the level of complexity and the higher the level of education, services income source, fairness and tax morale, the lower is the level of tax evasion. The findings are robust to various cross-country control variables, an alternative measure of tax evasion and several interactions.
Financial Crimes: Psychological, Technological, and Ethical Issues, 2016 / Dion, M., Weisstub, D., Richet, J. (ed./s), Ch.2, pp.33-57