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Factors Influencing Tax Evasion of Businesses: The Case of Albania

Author

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  • Meleq Hoxhaj

    (MSc. Economics, Researcher Scholar, Albanian Customs Administration, Albania)

  • Kamolli Erjus

Abstract

The aim of this paper is to analyse factors affecting tax evasion of businesses in Albania. Business tax evasion is a phenomenon that has to do with people trying not to pay the level of taxes they owe, as such it is understood to be as old a phenomenon as taxation. Factors affecting tax evasion vary from country to country, although they can be grouped into economic, psychological and social factors. Nowadays tax evasion has become an increasingly worrying phenomenon so it is important to analyse the factors that make people have an unethical attitude towards taxes, in order to identify the policies needed to mitigate this phenomenon. In our paper we initially made a description of this phenomenon and the main influencing factors. Following the data collected through a questionnaire in some businesses in Albania we have made an analysis to find the relationship between the tendency for business evasion and demographic factors such as age and gender of the person as well as factors such as the period of operation of the firm in the market, the size of the firm and the perception of the level of fines. The results show that young people, men, new firms in the market, large firms and when the perception of the level of fines is low there is a greater tendency for evasion.

Suggested Citation

  • Meleq Hoxhaj & Kamolli Erjus, 2022. "Factors Influencing Tax Evasion of Businesses: The Case of Albania," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 8, January -.
    • Handle: RePEc:eur:ejesjr:378
    DOI: 10.26417/233qcq96
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    References listed on IDEAS

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    1. Joulfaian, David & Rider, Mark, 1998. "Differential Taxation and TaxEvasion by Small Business," National Tax Journal, National Tax Association;National Tax Journal, vol. 51(4), pages 675-687, December.
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    3. Joulfaian, David & Rider, Mark, 1998. "Differential Taxation and TaxEvasion by Small Business," National Tax Journal, National Tax Association, vol. 51(n. 4), pages 676-87, December.
    4. Muhammad Muazzam Mughal, 2012. "Reasons of Tax Avoidance and Tax Evasion: Reflections from Pakistan," Journal of Economics and Behavioral Studies, AMH International, vol. 4(4), pages 217-222.
    5. Robert W. McGee, 2008. "Opinions on Tax Evasion in Asia," Springer Books, in: Robert W. McGee (ed.), Taxation and Public Finance in Transition and Developing Economies, chapter 17, pages 309-320, Springer.
    6. Robert W. McGee & Wendy Gelman, 2008. "Opinions on the Ethics of Tax Evasion: A Comparative Study of Ten Transition Economies," Springer Books, in: Robert W. McGee (ed.), Accounting Reform in Transition and Developing Economies, chapter 36, pages 495-508, Springer.
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    Cited by:

    1. Joshua Commey, 2023. "Conceptualizing Tax Evasion and Tax Compliance Strategies," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(8), pages 169-181, August.

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