Keywords

1 Introduction

The last years many countries have attempted to raise tax awareness by targeting the wider population, while others have placed particular emphasis on education and awareness of young people. OECD publication “Building Tax Culture, Compliance and Citizenship” provides 28 develo** country initiatives for taxpayer education [1]. Tax awareness among young people is identified as being of paramount importance and an important objective of their education programs. The intentions are to cultivate tax awareness and tax ethics among young people, before the new generation enters the labor market.

The purpose of this study is to examine students' views on their education and to what extent it contributed to their tax knowledge. Through the synthesis of the literature, recommendations for changes that could be incorporated into the Greek educa-tion system will be made. Actions that have been taken in other EU Member States and worldwide, aiming at cultivating tax awareness and preventing the general negative attitude of citizens towards taxation, are presented. The aim of this paper is to examine the exposure of the participants to the Greek tax regime, as well as their approaches on this.

2 Literature Review and Theoretical Framework

2.1 Tax Compliance

The issue of tax compliance is very old. Describing the recorded patterns of tax compliance and finding ways to reduce it is a dominant concern of governments around the world. Tax compliance issues can be viewed as a problem of public finance, law enforcement, organizational design, labor supply, ethics, or a combination of all of these [2]. Voluntary tax compliance is the willingness of individuals to comply with tax laws without any additional enforcement [3]. Tax compliance is defined as the ability and willingness of taxpayers to comply with tax laws, to declare the correct income and to pay their taxes on time.

2.2 Factors Affecting Tax Compliance

Factors that have been considered important in explaining tax compliance are the level of real income, the tax rate, tax benefits, tax audit, audit probabilities, fines and penalties [4]. There are also many non-economic factors that influence the level of tax compliance. These factors include willingness to pay for public benefits, public education, tax ethos, tax information, etc. The publication of tax information can be an important determinant of tax compliance, as it communicates to taxpayers’ accurate data on tax evasion. However, there is little empirical evidence on whether or not tax information publication has an effect on the level of tax compliance.

Statistics on tax evasion have been published in most developed countries. There are three tax items under the public communication system which are: personal income tax, corporate income tax and inheritance tax [5].

2.3 Tax Evasion

Tax evasion is a concern for governments around the world. Taxpayers' decisions to comply or evade tax are influenced by many factors, but this does not mean that all taxpayers are affected in the same way by these factors. Tax ethics is a parameter that can explain taxpayers’ tax evasion behaviour. Studies incorporate variables and models that do not rely on the economic-rational decision model to explain why taxpayers comply, and more studies analyze international databases to examine differences and similarities across countries. Below are some different models and variables which include:

  1. 1.

    country-level measures of economic well-being, such as gross national product GDP per capita and inflation and employment trends [6]

  2. 2.

    country-level measures of public expenditure, such as general government expenditure [7]

  3. 3.

    individual-level variables such as religiosity, trust in government and tax ethos [8]

  4. 4.

    the exchange relationship between citizens and government in terms of what citizens pay versus what they receive [9].

The relationship between tax ethics and tax evasion has also been investigated. The results show a strong negative relationship between tax morale and tax evasion—as tax morale decreases, tax evasion increases. Factors associated with tax ethos have been analyzed and the results are somewhat consistent across countries [8]. Tax evasion occurs when taxpayers do not pay their expected share of taxes and do not comply with the applicable tax rules and regulations. Many studies analyze the relationship between a variety of variables and tax compliance. Most of the variables used in the analyses are individual-level variables (e.g., age, type of employment, gender, marital status, religiousness, trust in government).

Research [10] shows that tax evasion is negatively correlated with tax ethic and with measures of national governance and institutional quality. These variables help to determine the exchange relationship that taxpayers experience with their governments. All of these influence taxpayers' beliefs, values and behaviour. At this research examine what factors drive at tax evasion and what actions help the governments to decrease this.

2.4 Tax Ethics

Tax ethics is the intrinsic incentive to pay taxes. It represents the willingness or ethical conviction of the taxpayer to pay taxes. Although tax ethics is internally motivated, it is influenced by the external world [11].

Tax ethics can be seen as a set of underlying incentives for tax compliance. The five categories of mechanisms are: i. intrinsic incentives, which can be viewed as an additional term in the utility function that increases with the amount of tax the individual decides to pay; ii. reciprocity, in which an additional utility term for paying taxes depends in some way on the individual's relationship with the state; iii. social influences, in which the additional utility term for paying taxes depends on the views or behaviours of other individuals, iv. long-term cultural factors that may influence the willingness to pay taxes and v. information imperfections where, for example, individuals may misperceive the likelihood of being identified as tax evaders [12].

The tax ethos differs significantly and systematically between countries (United States and Western Europe) because countries have different levels of political and economic institutional quality and structure [13].

Each country has its own national tax culture and defines it as the set of all interacting formal and informal institutions associated with the national tax system and its practical implementation and are historically embedded in the country's culture. These studies show that tax culture influences taxpayer behaviour [14].

Investigation [15] find that improvement in socio-economic conditions and the level and quality of public services increased the tax ethos of Spanish people.

Tax ethics is influenced by multi-components and part of tax ethics is inherit-ed from one's parents/relatives. It is found that the tax ethos of second-generation Americans is mainly and significantly influenced by the country of origin of their ancestors [16]. In this research, factors that can lead taxpayers to tax cultivation are examined.

2.5 Education and Tax Compliance

According to research [17], education can reinforce norms that are positively associated with tax compliance, such as honesty, morality, national pride, concern for others and fairness. This is in line with the objective of taxpayer education proposed by the Organization for Economic Co-operation and Development [18].

The most effective provider of formal tax education should be schools and universities. Through them systematically structured and standardized tax knowledge can be disseminated [19]. Increasingly, there is a demand to educate students for the principles of their country's tax system. It is considered that educating students about taxation will enable them to have basic knowledge and make informed decisions about their tax affairs. Increasing the level of taxpayers' knowledge about taxes will result in an increase in the level of the country's tax compliance rate and ultimately lead to an overall in-crease in government revenue [20].

Lack of understanding of tax laws causes non-compliance with tax laws or tax evasion, which later results in the government losing revenue and not being able to pro-vide basic social services to citizens [21].

What is known about the impact of education on tax compliance comes from student questionnaires. The limitations of these studies are that they have been based either on a limited number of student questionnaires or on country-specific surveys. Regarding the results obtained from studies based on student questionnaires [22] analyze the responses of 157 students from two universities, one in the US and the other in Hong Kong. They observe a negative relationship between educational attainment and tax compliance. Study [23] compare surveys of students from six countries and obtain mixed results on the relationship between education and tax compliance. In Brazil, Russia and China, individuals with low levels of education are more opposed to tax evasion, while in India and the US, individuals with higher levels of education show higher tax ethics. In contrast, in Germany, it is people with a medium level of education who show the lowest levels of tax compliance.

The Netherland [23] survey showed that among the 2951 respondents the probability of committing tax fraud increases with years of education. Studies that identify a positive relationship between education and tax morale are i. [24] analyses the relationship between direct democracy and tax ethics for Switzerland, ii. [25] investigation of the relationship between patriotism and tax ethics and iii. [26] examination of the effect of tax ethics on tax compliance for US and Turkey. This paper aims to examine how the education help the taxpayers to get tax compliance.

3 Research Methodology

In this paper the method that was followed is the quantitative method, using SPSS statistical method with questionnaire distribution. It involves the utilization and analysis of numerical data using specific statistical techniques to answer questions such as who, how much, what, where, when, how many and how [27]. Describe quantitative research methods as the explanation of an issue or phenomenon through the collection of data in numerical form and analysis using mathematical methods. This study examines the effectiveness of the Greek education system in sha** the tax consciousness of citizens. For the purpose of this pilot study, the group to be analyzed is undergraduate students and a questionnaire was used for data collection.

We aimed to assess the participants' exposure to the Greek tax regime and their respective attitudes towards it. In this way, the survey sought to ascertain whether participants would consider formal tax education, during their secondary education, useful or applicable to their future obligations as taxpayers.

Based on the literature review, the research questions on which this study is based are presented below: What is tax compliance? What factors affect tax compliance? What is tax evasion and what factors drive at tax evasion? What is tax ethics and how can tax ethics be cultivated? Can tax compliance be formed through education? How does education shape tax awareness? Also, based on the quantitative research that was conducted, the following research questions are presented: What are the students' views in relation to the tax knowledge they have received during their education? Is the education system effective in terms of forming tax-conscious citizens? Finally, based on the findings: What changes in the education system could contribute to improving the tax awareness of citizens?

The survey questionnaire consisted of 25 questions (Likert scale), which was selected based on their ability to address the following components:

  • Personal and demographic information,

  • Previous exposure to tax education as provided during the participants' secondary schooling,

  • Knowledge of taxation and related attitudes toward tax compliance,

  • Perception on the introduction of compulsory tax education in the secondary school curriculum in Greece,

  • Perceived areas of importance in financial literacy,

  • Students’ beliefs about the Greek tax system.

The participants in the research were 52 students from different universities in Greece. The sample consisted of male and female students aged 18 to 27 years and over, representing a range of demographic characteristics. The participation was voluntary.

4 Results

Descriptive statistical analysis was conducted to summarize and describe the demographic characteristics of the participants, as well as their level of tax knowledge, their perception of the Greek tax system and other relevant variables.

Percentages of responses for each gender category were calculated. The genders are roughly evenly distributed (27 males and 25 females). The majority were Male (51.9%), with 48.1% as Female.

Response rates were analysed for each age category (18–22, 23–27, 28 and over). Most participants were in the 18–22 age category, representing 82.7% of the sample. A smaller percentage of participants were in the 23–27 age category (15.4%) and only one participant (1.9%) was in the 28 and over age category.

The response rates for each category of marital status (Married, Unmarried, Divorced) were examined. All participants reported that they were unmarried.

The percentages of responses for each citizenship category were calculated. The majority of participants (88.5%) were Greek citizens (46 participants), while 11.5% indicated that they were not Greek citizens (6 participants).

The distribution of responses on current employment status was analysed. Participants reported 40.4% “not currently working”, 21.2% “Occasional employment”, 23.1% “Part-time employment” and 15.4% "Full-time employment".

Percentages of responses for each year of graduation were examined. The sample had an average graduation year of 2019, with a standard deviation of 1,429. The most common graduation year was 2019, representing 34.6% of the co-participants. Other graduation years included 2016 (7.7%), 2017 (7.7%), 2018 (3.8%), 2020 (34.6%), 2021 (7.7%), and 2022 (3.8%). The range of graduation years was from 2016 to 2022.

The majority of students (88.5%) stating that their school did not provide courses or educational programs that explained the purpose of taxation. Respondents were asked to select courses related to taxation from a list of options. The results are as follows:

According to the table above, the most frequently reported courses related to taxation were accounting (53.8%), mathematics (38.5%) and principles of economic theory (48.1%). However, a significant percentage of participants (23.1%) reported that none of the reported courses were related to taxation (Table 1).

Table 1 Frequency and percentages of courses related to taxation
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The results presented in Table 2 illustrate the distribution of knowledge levels among respondents at graduation in various tax-related areas. Regarding the level of knowledge in the area of “Purpose of Taxation in Society” 23.1% of the sample have “Very Poor” level of knowledge, 30.8% “Poor”, while 28.8% indicated “Moderate” level. A smaller percentage of people, 15.4%, chose “Good” and only 1.9% achieved an “Excellent” level of knowledge.

Table 2 Knowledge level when you leave the school
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When assessing “General understanding of tax obligations”, the respondents reported 32.7% “Very Poor” level of knowledge, 34.6% “Poor”. The “Moderate” level of knowledge was 26.9% and only 5.8% claimed to have “Good” level.

Regarding knowledge in the area of “Where to get help with tax obligations”, 25% of respondents reported "Very poor" level, 26.9% “Poor”, 42.3% reported “Moderate”, a small percentage 1.9% chose “Good” and 3.8% reported an “Excellent” level of knowledge.

Respondents’ knowledge of "How to complete a tax return" revealed that 48.1% had “Very poor” level, 30.8% were “Poor” category, 17.3% showed “Medium”, no data available for the “Good” and 3.8% of respondents indicated that they possessed an “Excellent” level of knowledge.

Finally, the question “How to understand a clearance note”, the majority of respondents (51.9%) reported “Very poor” level of knowledge, 26.9% “Poor”, 13.5% “Moderate”, while 3.8% indicated “Good” and “Excellent” level of knowledge.

Overall, the results depicted in Table 2 highlight a significant knowledge gap among respondents at graduation on various aspects of taxation. The majority of individuals demonstrated “Poor” or “Very Poor” levels of knowledge in all areas assessed, highlighting the need for improved education and awareness of tax issues.

From Table 3 can be understood that among the participants, 28.8% mentioned that a family member helped them in filing their first income tax declaration, 7.7% stated that they filled it by themselves, 32.7% stated that they had not filed tax declaration, while 30.8% asked for help from tax adviser or accountant.

Table 3 Assistance for submission first income tax declaration
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Participants were asked if they had gained additional tax knowledge since graduating from school, where 69.2% responded “Yes” and 30.8% “No”. Multiple sets of responses were defined, categorizing the sources into six options: attending tax seminars, personal study, relatives/friends, searching tax websites, university and workplace. The results showed that attending tax seminars was reported by 2.6% of the participants, while personal study 10.5%. The majority of participants (68.4%) reported that they gained additional tax knowledge from relatives or friends. Also searching to websites 13.2%, University 15.8% and workplace by 39.5% of participants.

Question to the participants whether they thought it would be beneficial to receive tax knowledge during school revealed that out of 52 participants, 3.8% answered “No”, while the majority (96.2%) answered “Yes”.

When asked whether participants believe that students should know the Greek tax system in order to understand their rights as taxpayers when they start working, 3.8% of participants answered “No”, while the majority (96.2%) answered “Yes”.

Asking the participants if they believe that students need to know about the Greek tax system, in order to understand how taxes contribute to society, all 52 participants (100%) answered “Yes” (Table 4).

Table 4 Introduction of educational programs at schools
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On the introduction of educational programs in schools. This question explored six different statements related to the impact and necessity of such programs.

Regarding the statement “The introduction of educational programs in schools will contribute positively to fostering tax awareness among today’s students and later active citizens”, the majority of participants (51.9%) expressed their agreement, 28.8% agree a little with this statement, while 3.8% slightly disagreed and 15.4% said they did not know.

Concerning the statement “The introduction of educational programs in schools is necessary”, a significant number of participants (50.0%) agreed with this perception, 36.5% agreed a little, 5.8% totally disagree, 3.8% disagreed a little, while some respondents (3.8%) said they did not know.

For the statement “The introduction of educational programs in schools does not make sense”, the majority of participants (55.8%) totally disagreed, 26.9% disagreed a little, 7.7% agree a little, 5.8% agree and a small fraction (3.8%) said they did not know.

Regarding the statement “The introduction of educational programs in schools will not have the desired results”, a significant number of participants (34.6%) disagreed a little, 19.2% totally disagree, 21.2% agree a little, 11.5% expressed agreement and 13.5% said they did not know.

In relation to the statement “The introduction of educational programs in schools is a positive initiative”, a significant majority of respondents (65.4%) agreed with this statement, 30.8% agree a little, while only a small percentage totally disagree 1.9% and respectively said they did not know.

Finally, concerning the statement “The introduction of educational programmes in schools can lay the foundations for students to become familiar with concepts and situations they will face in the future”, the majority of participants (61.5%) expressed agreement, a significant percentage (32.7%) agree a little, while a smaller percentage (3.8%) disagree a little and 1.9% totally disagreed.

5 Conclusions

This study provides valuable insights into the formation of tax awareness among young people in Greece, their level of tax compliance and their perceptions of the Greek tax system.

An important finding is the lack of tax education in secondary schools, as indicated by the majority of participants who reported the absence of courses or educational programs explaining the purpose of taxation. This highlights a gap in tax education in secondary education in Greece. In addition, participants' knowledge levels at school graduation were generally low in various areas related to taxation, highlighting the need for improved tax education and awareness among young people.

In terms of tax compliance, a significant proportion of participants sought help from family members or tax professionals when filing their first income tax declaration. Only a small percentage of them said they completed it themselves, and among these participants, the majority were not confident in their ability to do it correctly. This underlines the need to provide adequate support and guidance to young people in meeting their tax obligations.

Gaining additional tax knowledge since graduating from school was reported by the majority of participants, with informal sources such as relatives, friends, the workplace and personal study being the most common. All these findings underscore the importance of tax education.

The study suggests the need for targeted interventions to improve tax education, awareness and compliance among young people in Greece. Education plays a crucial role in sha** tax compliance. By providing individuals and businesses with the necessary knowledge and understanding of tax laws, rights and responsibilities, education can promote tax compliance. It helps individuals understand the importance of complying with tax laws, the consequences of non-compliance and the benefits of a well-functioning tax system.

A limitation of this research is the research sample of 52 students. The sample size is relatively small, which may limit the generalizability of the findings. Also, the use of self-reported data is subject to potential biases and inaccuracies. Despite these limitations, the study provides valuable insights into the relationship between secondary education and tax awareness among young people in Greece.

Based on the findings of the survey, there are several possible suggestions for further research and consideration. Future research with a larger and more diverse sample is recommended to validate and extend these findings, considering other factors that may influence participants' knowledge levels. By including participants from various demographic backgrounds, socio-economic situations and educational levels, the study may provide a more comprehensive understanding of tax awareness and attitudes towards the tax system at Greece.

The comparison of findings from the Greek tax system with the tax systems of other countries can provide valuable insights into cross-cultural differences in tax awareness and compliance. Conducting a comparative analysis will involve examining tax education practices, levels of tax compliance and perceptions of the tax system among young people in different countries.

Supplementing quantitative data with qualitative research methods can provide a deeper understanding of the factors that influence tax awareness and behaviours. Conducting interviews or surveys with open-ended questions can capture participants' views, experiences and suggestions for improving tax education. These qualitative data can help reveal factors that may not be captured through quantitative analysis alone. Universities may contribute for the qualification of potential employees [28,29,30].

By pursuing these future research directions, a more nuanced understanding of tax compliance and education among young people in Greece can be achieved. These suggestions can contribute to the development of evidence-based policy and educational interventions aimed at improving tax literacy, promoting tax compliance and promoting a fair and transparent tax system in Greece and possibly in other countries.