Tax Evasion and Rational Choice of the Taxpayer

The model of rational choice of the taxpayer who makes the decision about tax evasion is presented in the article. The influence on the decision about tax evasion of the following factors is analysed: average tax rate; the size of penalty sanctions; probability of revealing the fact of evasion; brokerages paid to mediators who assist to tax evasion; evasion transaction costs. It is grounded that lowering of tax rates produces no significant influence on reduction of evasion scale, and for this purpose it is necessary to raise operating costs for mediators and decrease the general level of corruption in the country.