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Tax Evasion in the Modern World: Institutional Aspects

Author

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  • Alexander I. Pogorletskiy

    (St. Petersburg State University, St. Petersburg, Russian Federation; Financial University under the Government of the Russian Federation, Moscow, Russian Federation)

Abstract

The purpose of the article is to systematize the institutional characteristics of tax evasion in the system of international economic relations. The role of institutional structures in preventing individuals and legal entities from failing to fulfill their tax obligations is characterized. The object of the research is the institutional environment that constitutes the mechanisms of tax evasion at the national and global levels. The research methodology includes graphical and comparative methods, as well as system and functional approaches to the characterization of institutions and socio-economic phenomena in the context of tax evasion. Historical and logical analysis of institutional aspects of this phenomenon in the global economic environment is carried out. The information base consists of fundamental works on the identification of the causes and consequences of tax evasion, published by leading theorists of financial and tax science, as well as authoritative classic and modern works in the fields of social sciences. In order to assess the scale and impact of tax evasion on the modern system of global economic relations, reports and studies of international organizations (OECD, UN, IMF, etc.) and a number of research centers were used. The hypothesis of the study was that institutional factors are significant both for explaining the causes of tax evasion and for choosing appropriate mechanisms to counteract this phenomenon. The research resulted in a typology of institutional preconditions and consequences of tax evasion, previously absent in existing publications and first proposed by the author, designed to help regulators to have more meaningful impact on this process in the contemporary world economy. The main findings suggest that institutional factors significantly affect tax evasion. Formal rules of taxation established by the state, as well as tacit moral and ethical norms of behavior based on culture and religion, determine the behavior of individuals and business entities, the influence on which by interstate institutional structures of tax regulation seems necessary.

Suggested Citation

  • Alexander I. Pogorletskiy, 2025. "Tax Evasion in the Modern World: Institutional Aspects," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 3, pages 54-71, June.
    • Handle: RePEc:fru:finjrn:250304:p:54-71
    DOI: 10.31107/2075-1990-2025-3-54-71
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    References listed on IDEAS

    as
    1. Alex Cobham & Petr Janský, 2018. "Global distribution of revenue loss from corporate tax avoidance: re†estimation and country results," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(2), pages 206-232, March.
    2. Sebastian Beer & Maria Delgado Coelho & Sebastien Leduc, 2019. "Hidden Treasure: The Impact of Automatic Exchange of Information on Cross-Border Tax Evasion," IMF Working Papers 2019/286, International Monetary Fund.
    3. Jeff P. Boone & Inder K. Khurana & K. K. Raman, 2013. "Religiosity and Tax Avoidance," Working Papers 0198acc, College of Business, University of Texas at San Antonio.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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