Ricerc@Sapienza

Tax evasion limits the capacity to raise revenues and to carry out economic and social policy. Reducing tax evasion is even more important in the aftermath of the current health and economic crisis, which, because of the slow-down in economic activity and employment, will result in lower corporate and personal income tax and reduced consumption tax revenues. Proposals for tax policy in response to the Coronavirus crisis include increasing tax cooperation to fight tax avoidance by multinational enterprises, addressing the tax challenges of the digitalisation of the economy and a progressive European wealth. This project investigates additional strategies, which could complement other tax policy responses to the crisis, namely exploiting personal and social communication to increase tax morale and thus tax compliance. The tax authority could devise information and communication campaigns aimed at raising taxpayers' awareness about the importance of paying taxes as a moral obligation, thus increasing the stigma attached to tax-evasion. These campaigns should also emphasise the link between tax payment and provision of government services and public goods.