Journal of Statistical and Econometric Methods

The Effect of over-taxation and Corruption at Commercial Enterprises in Greece: Evidence from a Survey Experiment

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• Abstract

   

  The problem of tax evasion and tax avoidance is one of the most important issues which Greece has to face. In Greece, research has provided evidence that tax evasion is higher than other countries and this fact burdens the economic situation of the country. Overcrowding in a reluctant economy has many adverse effects and is a brake on sustainable development. High taxes are incentive for tax evasion, causing the state to record revenue losses. This in turn leads to new tax increases, further encouraging tax evasion. The subject of this paper is the over-taxation and its relation to the corruption phenomenon that characterizes the country of Greece.

  For the needs of this paper, an experimental survey was distributed to commercial enterprises in a prefecture of Peloponnese of Greece. The results of the survey showed that overpopulation and corruption co-exist and are symptoms of a society dominated by a lack of confidence in the state. Both overemphasis and corruption are political and economic problems and well-designed measures to modernize the political system and contribute to their effective treatment.

   

  JEL classification numbers: H26, L26, K34.

  Keywords: Taxation, Tax evasion, Corruption.