ANALYSIS AND MEASUREMENT OF TAX EVASION FACTORS USING QUESTIONNAIRE-EXAMPLE FROM BOSNIA AND HERZEGOVINA

Abstract

Analysis and measurement of tax evasion is a very important issue primarily for the tax administration. The purpose of this article is first to show how to analyze tax evasion via a questionnaire. In Bosnia and Herzegovina, as well as in the EU countries and adder countries in the region and the world, ensuring fighting tax evasion has never been important than it is today. Tax evasion can’t observe in isolation from the rest of society. Maximising the revenue collected by promoting fighting tax evasion is the main responsibility of a tax administration. According to current knowledge, it is not possible to precisely quantify the range of individual factors on the very occurrence of tax evasion and the analysis and measurement of tax evasion factors does not have an easy path and is not an easy task. There are numerous studies on the influence of certain factors of tax evasion. This study highlighted the importance of factors that determine tax evasion. The objectives of this article are to give how to analyse and measure tax evasion. Due to the financial and economic crisis, the issue of tax evasion in order to improve the state of public finances. The answer to the question is very complex for several reasons. Factors of tax evasion change dynamically over time due to economic conditions, business innovation, e-commerce development, economic crisis and today COVID pandemic, political stability, resource availability, competitive situation, quality and capabilities of state institutions, tax legislation, etc. A survey of respondents’ attitudes towards tax evasion was conducted in order to analyze and measure tax evasion factors. The primary research of the respondents has been conducted, in order to analyze and measure the factors of tax evasion. The study adopted a quantitative survey design, convenience sampling technique, and questionnaire as a data collection instrument. We found that the introduction of appropriate penalties can increase tax discipline and improve compliance with and enforcement of tax laws. Such solutions should achieve a preventive effect, and consequently a repressive one. In the end, it is necessary to raise the level of political security, because without raising and increasing political security within the state and fight against tax evasion is limited. A key point is that require legislative change to maximise the suggestions above. Starting from the presented in the paper, ie analysis and measurement of tax evasion factors, a general conclusion can be made that priority and special emphasis should be given to these factors mentioned in the research, through which measures and activities can improve the situation faster and more efficiently.Furthermore, in line accordance with economic trends, this paper can contribute to the literature by presenting the results and shows that the questionnaire can be used to recognize the observed phenomenon. Finally, it is worth recognising a need for new research questions regarding the analysis and measurement of tax evasion.