Small Business Owners Embrace 'Creative Compliance' to Dodge Taxes
The study looked at how small business owners feel about avoiding taxes legally and illegally. They found that owners see tax avoidance and tax evasion differently. Tax avoidance is linked to thinking the tax system is unfair and has loopholes to exploit, while tax evasion is connected to seeing evasion as a minor crime. Both tax avoidance and tax evasion are more likely when owners don't feel a strong personal duty to pay taxes.