THE STABILITY OF THE TAX SYSTEM,THE TRUST IN GOVERNMENT AND THE EFFECT OF THE RESPECTFUL TREATMENT OF TAXPAYERS TO THE TAXPAYER BEHAVIOR

Abstract

Nobody likes to pay taxes. The most popular means of compelling people to pay taxes is the policy of deter-rence. There is considerable evidence that coercion efforts may increase compliance with tax rules, but extreme punishments may even have counterproductive effects -resulting in lower tax payments and the loss of general trust in state institutions. Combating of tax evasion and hidden economy and reducing their scale are an important policy goal for each country. The causes of hidden economy are examined extensively through mul-tiple research methods. The basic model of tax evasion is based on maximizing expected utility. Some research, in the beginning, examined the reasons for the classic economics toolbox, while later investigations go beyond the limited set of tools of these analyses and attempts to approach the causes of avoidance, tax denial, and the tax evasion from a behavioural science, economic psychological and sociological point of view. In this study, I look at the correlations between the trust in governmentand institutions, the respectful treatment of taxpayers for the control bodies, the effect of coercive measures, the stability of the tax system and the willingness of pay taxes. The investigation of this issue is always crucial, because the shadow economy has an impact on the whole society and this country's economic processes; moreover, this is a self-fuelling process.