Abstract

Modern tax administration practices show that enforcement measures and penalties are no longer the only, nor necessarily the most effective, tools for preventing tax fraud. Recent studies in behavioral economics and social psychology have demonstrated that individuals’ decisions to comply with or evade taxes are strongly influenced by systems of social norms. This article analyzes the mechanisms through which descriptive norms and injunctive norms affect taxpayer psychology, and on that basis proposes several policy recommendations aimed at fostering a sustainable culture of compliance rather than one based solely on the fear of punishment.

Keywords: Behavior, policy, psychology, recommendation, social norms, taxation.