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Tax compliance during fiscal depression periods: the case of Greece

Petros Lois (School of Business, University of Nicosia, Nicosia, Cyprus)
George Drogalas (University of Macedonia, Thessaloniki, Greece)
Alkiviadis Karagiorgos (University of Macedonia, Thessaloniki, Greece)
Aikaterini Chlorou (University of Macedonia, Thessaloniki, Greece)

EuroMed Journal of Business

ISSN: 1450-2194

Article publication date: 17 September 2019

Issue publication date: 23 September 2019

1378

Abstract

Purpose

Governments count on tax revenues in order to finance their fiscal and social activities. The purpose of this paper is to analyse the citizens’ conception of tax compliance and examine the factors affecting tax behaviour.

Design/methodology/approach

This survey was conducted through a stratified sample and questionnaires consisted of closed-ended questions. A linear regression and a series of reliability tests including an analysis of variance were conducted with IBM Statistical Package for Social Sciences.

Findings

The majority of the respondents demonstrate a positive perspective towards tax compliance and tax administration employees that inspire it. However, while the fairness of the tax system is evident, findings indicate a deeper issue of social and behavioural influences, including the characteristics of tax administrative employees and tax morality.

Research limitations/implications

The findings are subject to over- or sub-representation, since the sample derived from groups whose occupations feature strong tax compliance. The study was conducted in Greece, and it is possible that the results can be generalised to developing countries with similar economic environments and fiscal circumstances.

Practical implications

Non-economic factors affect tax behaviour and the formation of modern tax strategies. This survey enables governments to improve tax compliance rates and increase tax revenues. Fiscal depression tends to decrease state revenues. Tax compliance factors should be taken into account through tax decision-making processes and ensure efficient tax collection.

Originality/value

This paper furthers the existent literature and deepens in non-economic factors of morality, revealing tax behaviours instigated by reasons beyond tax unfairness.

Keywords

Citation

Lois, P., Drogalas, G., Karagiorgos, A. and Chlorou, A. (2019), "Tax compliance during fiscal depression periods: the case of Greece", EuroMed Journal of Business, Vol. 14 No. 3, pp. 274-291. https://doi.org/10.1108/EMJB-02-2019-0028

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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