THE IMPORTANCE OF BEHAVIOURAL TAXATION IN EUROPEAN UNION

Abstract

Fiscal policies, both in general and within the European Union (EU), include an examination of
the reasons behind tax evasion and the establishment of mechanisms to encourage greater tax
compliance among taxpayers. In such analyses, the behavioural economic and taxation policies model
is deemed more effective than traditional tax models, considering various factors influencing taxpayer
behavior. Within these interdisciplinary considerations, encompassing social and cultural elements, the
implementation of principles of equity in taxation surfaces as a pivotal influence in molding the behavior
of taxpayers and their tax morale.
The European Union's situation is quite complex, given the multitude of member states and the
diverse geo-political, cultural, historical, and social contexts, along with variations in economic
development and other differences. In this nuanced landscape, the behavioural model seems much more
fitting for analysis as it considers these specificities and distinctions. Among these factors, behavioural
taxation plays a pivotal role and European fiscal policies highlight its relevance, both in theory and
practice. The paper analyzes how behavioral taxation affects tax compliance and tax morale of taxpayers
in the EU.