Perception of tax evasion and tax fraud in Portugal: a sociological study

This article aims to analyze the perception of individual taxpayers on tax evasion, in Portugal. The international literature emphasizes the existence of several determinants that influence the taxpayers’ decision in comply or not comply with their fiscal obligations. We highlight the economic, cultural, sociological, psychological and technical determinants (Allingham, 1972; Torgler, 2006; Tsakumis, 2007; McGee, 2009). This paper intends to study the relationship between sociological factors and the behavior of taxpayers in relation to tax compliance. To achieve these objectives, we use, as a technique of gathering information, interviews using a questionnaire - survey, which we have applied to a heterogeneous sample of the Portuguese population of individual taxpayers. We have Inquired 134 individual taxpayers, in the city of Coimbra. We conclude, by using a regression model, that tax evasion in Portugal, is justifiable, in certain circumstances, for some taxpayers respondents. The main arguments justifying tax evasion are associated with the unfairness of the tax system, the high tax burden, and the waste or misuse of taxpayers’ money and finally the corruption among the political class. Furthermore, the possibility of taxpayers to be discovered by the tax authorities is not presented as an argument justifying tax evasion, thus we verified this is not a deterrent to the practice of tax evasion and tax fraud in Portugal.