Tax Ethics and Evasion of Tax: A Pilot Study of Udaipur City

Abstract

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Tax revenue is the source of funds used for development projects such as provision of infrastructure like good roads, stable power supply, stable water supply, and so on. Low tax compliance is a major source of concern in India, as it limits the ability of the government and development efforts. Many variables are widely regarded as contributing to this shortcoming. In a developing country, tax moral is seen as the most important influencing factor of tax evasion. In this study, data is collected through primary and secondary sources of data; a questionnaire was circulated and 61 responses were selected for the final analysis. In this study, Cronbach’s alpha, K-S test, and descriptive statistics are used for data analysis. The finding shows that a majority of the respondents file their tax returns, have faith in the government, and think that paying taxes is a civic duty and not a burden. This shows their moral and compliance level. Results also explain that female taxpayers, highly educated people, and older citizens are more ethical than others.

Keywords: Tax Ethics, Tax Evasion, Trust in Government, Tax Non-Compliance

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