Tax law observance and the optimum strategy choice for the taxpayer behavior in the decentralized systems

Abstract

Modeling tax law observance demands accounting different types of tax behavior which differ in the differentiated reaction to actions of the state regarding the control functions realization. This demands weakening the initial classical assumptions that the taxpayer behavior became more various and adaptive. Modeling results show that maximizing controllability of tax system from the state leads to the fact that increase in level of its efficiency is possible only due to extensive growth of supervisory authorities. Optimum strategy is partial replacement of control function of the state by coordinating the self-organized groups of taxpayers created as a result of autonomous tax system entropy growth. Change of tax control forms regarding introducing the "horizontal monitoring" procedures for "a fair play of initiatives", increase in loyalty and trust due to introducing the strategy of taxpayers and control bodies cooperation is also possible