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Title: The phenomenon of tax evasion and undeclared work in Greece. Causes and the role of control mechanisms

Authors: Petros Lois; George Drogalas; Alkiviadis Karagiorgos; Eleni Karasteriou

Addresses: Department of Accounting, University of Nicosia, 46 Makedonitissas Avenue, CY-2417, P.O. Box 24005, CY-1700, Nicosia, Cyprus ' Department of Business Administration, University of Macedonia, 156 Egnatia Street, GR 54636, Greece ' Department of Accounting, School of Business, University of Nicosia, 46 Makedonitissas Avenue, CY-2417, Cyprus ' Department of Business Administration, University of Macedonia, 156 Egnatia Street, GR 54636, Greece

Abstract: The purpose of this paper is to investigate tax evasion through undeclared work incidents. It examines low taxation ethics observed from citizens and relates then to evasion levels connected to undeclared work. The research introduces a number of factors including different business sectors, a country's economic, sociological and political conditions. Furthermore, it investigates the phenomenon compared to inadequacies in state taxation and auditing mechanisms, as well as undeclared work's different types. The research was conducted in the second biggest industrial and economic centre of Greece in public administration organisations and accounting offices. The sample responded to closed questions questionnaire and the results showed that the low insurance and taxation ethics levels demonstrating by citizens are related most variables mentioned above. Overall, the study makes several important contributions, although of the most interesting results was the strong correlation between undeclared work and socio-political factors. Research findings contribute to the existing but limited literature, providing evidence for southern European countries and developing countries.

Keywords: undeclared work; social security contribution evasion; contribution evasion; low insurance; tax morality; Greece.

DOI: 10.1504/IJMFA.2020.107002

International Journal of Managerial and Financial Accounting, 2020 Vol.12 No.1, pp.71 - 88

Received: 28 Oct 2019
Accepted: 03 Jan 2020

Published online: 27 Apr 2020 *

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