The problem of tax evasion and tax
avoidance is one of the most important issues which Greece has to face. In
Greece, research has provided evidence that tax evasion is higher than other
countries and this fact burdens the economic situation of the country. Overcrowding
in a reluctant economy has many adverse effects and is a brake on sustainable
development. High taxes are incentive for tax evasion, causing the state to
record revenue losses. This in turn leads to new tax increases, further
encouraging tax evasion. The subject of this paper is the over-taxation and its
relation to the corruption phenomenon that characterizes the country of Greece. For the needs of this paper, an
experimental survey was distributed to commercial enterprises in a prefecture
of Peloponnese of Greece. The results of the survey showed that overpopulation
and corruption co-exist and are symptoms of a society dominated by a lack of
confidence in the state. Both overemphasis and corruption are political and
economic problems and well-designed measures to modernize the political system
and contribute to their effective treatment.
JEL classification numbers: H26, L26, K34.
Keywords: Taxation, Tax evasion, Corruption.