Corruption and Tax Compliance of Greek SMEs

Abstract

The literature on the determinants and impact of the Greek shadow economy, and moreover, of the latter’s interaction with corruption, has greatly expanded since the beginning of the current economic crisis. We look upon a less discussed theme on this subject, which concerns the factors that shape the tax compliance decisions of Greek SMEs. Based on data from the World Bank, we build upon earlier approaches to the subject and control for the role of corruption in tax compliance decisions via conditional logistic regression.

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