Economic Crime: Tax Evasion in a Developing Country

Tax compliance is sensitive in nature, making empirical research challenging, and reliable data on tax evasion scarce. Large-scale collection an inherently complex task, it becomes even more challenging a country that transitioning from communist to democratic government. This essay explores the difficulties of collecting such offers case study demonstrate how main challenge technology can be overcome. In recent years, there has been growing interest informal sector economy, including many commercial businesses operate outside formal channels. Unfortunately, countries, those with mature fiscal systems still early stages economic growth, have culture “cheating government.” Albania one continues face significant challenges customs fraud. Several studies conducted shown transactions account for 30% or all transactions, which higher than regional average. Both theoretical analyses point burden as primary predictor shadow economy. other words, when taxes are high, people likely engage activity avoid paying them. We employed crosswise model, novel technique collecting, get estimates (CM). Conceptually, CM based randomized response method (RRT). used (N = 163) experimental online survey. Our findings demonstrated by enhancing privacy during process, was able extract larger percentage self-stigmatizing allegations evasion.