Designing an effective tax evasion prevention policy

Taxation has always been overcast by the prospect of tax evasion. The phenomenon of tax evasion is based on resistance to paying taxes. It is influenced by numerous factors and accompanied by diverse financial, legal, economic, social, psychological and political effects. The spectrum and the scope of taxpayers' illicit behaviour in the sphere of compliance with tax regulations essentially reflect the degree of their tax indiscipline. The significant presence of tax evasion calls into question the implementation of the principle of social solidarity and reciprocity in financing public needs, as well as the achievement of liquidity and stability of the budget and public finances. Therefore, quality tax system administration in any country presumes designing an effective policy to prevent tax evasion (anti-evasion policy), aimed at fostering tax loyalty, minimizing the opportunities for tax dishonesty and adequately sanctioning tax delicts. In effect, short-sightedness and superficial focus on one aspect of the tax evasion problem proves to be inadequate. In seeking new ways to secure tax compliance, tax evasion has to be treated by applying a multidisciplinary approach. In addition, it is important to emphasize the need for a thorough analysis of the perceived obstacles and challenges in the application of tax legislation in order to cast more light on additional opportunities and initiatives for taking purposeful activities and measures aimed at eliminating tax resistance and taxpayers' discontent.