Possible causes of tax evasion

Only a limited number of empirical investigations, into possible causes of tax evasion, have been carried out. Most of these have been conducted since 1970 and they have been carried out in countries other than Australia. Much of the published research was reviewed lo develop a set of hypotheses which were then tested with Australian data. The results of those tests are reported in this article. It appears that several things might influence taxpayer's behaviour and in Australia, the exchange indicator could be one of the important influences.