The evaluation of tax evasion and tax morale in the Republic of Croatia

Sabina Hodžić; Tanja Fatur Šikić; Zoja Kopjar

doi:10.71159/icemit2533H

Authors

Sabina Hodžić University of Rijeka, Faculty of Tourism and Hospitality Management in Opatia, Croatia
Tanja Fatur Šikić University of Rijeka, Faculty of Tourism and Hospitality Management in Opatia, Croatia
Zoja Kopjar University of Rijeka, Faculty of Tourism and Hospitality Management in Opatia, Croatia

DOI:

https://doi.org/10.71159/icemit2533H

Keywords:

tax evasion, tax morale, fiscal policy, Croatia

Abstract

In the Republic of Croatia, as in many other countries, tax evasion occurs in various forms, from non-payment of income tax and value added tax to the concealment of income or the transfer of assets in order to reduce the tax burden. The aim of this paper is to analyse the attitudes and opinions of citizens about tax evasion and tax morale in the Republic of Croatia. The conducted research has shown that the citizens of the Republic of Croatia are aware of the large presence of tax evasion in the system and that they are familiar with its negative impact on the economy. In addition, citizens believe that the current tax laws are not sufficient to combat it and suggest changes in the tax system, equality among taxpayers, better cooperation with the tax administration, but also an increase in tax morale.

References

Allingham, M., & Sandmo, A. (1972). Income tax evasion: A theoretical analysis. Journal of Public Economics, 1(3–4), 323–338. https://doi.org/10.1016/0047-2727(72)90010-2

EU Tax Observatory. (2024). Global tax evasion report 2024.

Fishlow, A., & Friedman, J. (1994). Tax policy in developing economies. Oxford University Press.

Johannesen, N., & Zucman, G. (2014). The end of bank secrecy? An evaluation of the G20 tax haven crackdown. American Economic Journal: Economic Policy, 6(1), 65–91. https://doi.org/10.1257/pol.6.1.65

Kopjar, Z. (2024). Tax evasion and tax morale in the Republic of Croatia (Master’s thesis). University of Rijeka, Faculty of Tourism and Hospitality Management.

Madzarevic-Sujster, S. (2002). An estimate of tax evasion in Croatia. Financial Theory and Practice, 26(1), 117–144.

Prebble, J. (2005). Tax avoidance and the rule of law. British Tax Review, 5, 325–347.

Srinivasan, T. N. (1973). Tax evasion: A model. Journal of Public Economics, 2, 339–346. https://doi.org/10.1016/0047-2727(73)90024-8

Šimović, H. (2017). Reforma poreznog sustava u Hrvatskoj: izazovi i rezultati. Ekonomski pregled, 68(4), 351–372.

Yitzhaki, S. (1974). A note on income tax evasion: A theoretical analysis. Journal of Public Economics, 3, 201–202. https://doi.org/10.1016/0047-2727(74)90037-1