Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Scenario Modeling of Change of the Level of Tax Culture: The Case of Ukraine

Author(s): Olha Kravchenko, Olha Yarmolitska, Svitlana Shuliarenko, Olena Kolumbet, Olena Kharchuk

The paper is devoted to the study of a tax culture formation in the context of the willingness of individuals to pay income tax. The analysis is based on data from Ukraine for 2014-2018. It is shown that there is an interdependence between the level of tax culture and the volume of the shadow economy in the country. Scenario modeling was used as a research tool. This allows us to study the dynamics of socio-economic processes in an uncertain future. Based on the identified driving forces, two scenarios of changing tax culture in Ukraine were built. Their analysis showed that increasing real wages and living standards does not significantly affect the level of tax culture. It is determined that the level of public confidence in the state and its conviction in social participation in the development of the country through the payment of taxes are of greater importance. For Ukraine, a set of measures was proposed to increase the tax culture, aimed at improving the state tax model, increasing public confidence in the state and its tax authorities, and raising the awareness of citizens.

Get the App