The tax as a public and mandatory law
Introduction
As we have seen after this reading, there is a great controversy among those who decide or not pay their taxes. But within these two groups, there is an even greater subdivision that does not have a clear definite positioning. That is, according to the instigations and limitations imposed by the authority responsible for said town, the individual will act in one way or another. The personalities of each influence this decision, but also their environment, such as the number of people who decide to pay taxes or contributions in order to achieve a series of social benefits.
Developing
If this number of people is high, but the benefits they obtain from this payment are unsatisfactory, it will cause a change of conduct in said taxpayers, since in the end they will choose according to the well -being provided by this payment. To this example could be added multitude of correlative situations and, according to each panorama, the behavior of most individuals would be affected. Therefore, apart from analyzing each variable proposed by the author individually (with Ceteris Paribus in the rest of the variables), it is vitally important to make a joint assessment of each analyzed environment.
In this way it is easier to know or provide for taxpayers’ behavior and be able to establish measures to correct or limit positions of planning, evasion or tax breach. According to the author, "breach of fiscal laws can be understood as a defective act of a social dilemma". If this individual selfishness is extended, it can lead to the destruction of the collection system of the region and, as a consequence, to end the public sector that is responsible for offering goods and services to citizens in order to guarantee a social good for all. In addition, the public sector is also responsible (according to its political ideology).
Helping or promoting economic activity in certain sectors to avoid global or direct negative consequences for all stakeholders of that region. Thus, we see that it is essential. In order to demonstrate that our social behavior is still present today, Frank Cowell studied in 1985 that, through the mechanism of the voluntary contribution, the participants contributed in a general way with 60% of the total resources (Fican is thiscase) in the group stock exchange.
We can extract that the cause of this deviation and the appearance of “Free Riders” in the system is because of the instigations produced by the deficiencies of the system, whether social, political or executive. As an example, we can take dissatisfaction with the political or fiscal authorities of the region based on the values of taxpayers, whether environmental, solidarity or elitist nature. Since, according to the values in each estate of society, a group will be seen with greater propensity of evasion based on the values violated by the fiscal responsible.
It is at this time, control measures will have to be activated to reduce this impact on tax policies. These measures can be social or economic, that is, society is aware of the contribution and denies contrary behaviors;or, on the other hand, the authorities have to establish sanctioning measures for those who try to avoid the corresponding tax compliance. An example of social measure can be the support or disapproval of the group against these attitudes, but in addition, this perspective can influence the number of people close to the taxpayer who respect or evade said compliance.
As for economic measures, the probability of being found and the level of penalty can be very useful to avoid this problem. Even establishing severe fraud detection mechanisms, the situation and personality of each individual directly influence risk aversion. But in general, greater control in this regard is directly related to compliance with its tax obligations. On the other hand, the amount of penalty is not so effective in controlling the proportion of evasion. Since we can see that the population is more concerned with having a greater possibility of receiving fines of lower amount.
conclusion
Have a low probability of receiving more cost penalties. This is why entities such as the Brazilian Federal Court dedicate half of their budget to resolve tax disputes and the detection of tax evasion. Therefore, even analyzing each variable on its own, the global analysis of all the factors that influence the propensity of complying or evading the payment of taxes by their taxpayers is of vital importance for each collection entity. In this way, you can know in a more appropriate way in which variable should make special emphasis in order to avoid this type of behavior.
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