Increasing tax compliance by behavioural public finance approaches

According to the mainstream economic theory, it is accepted that people are rational and reasonable in their decisions. But this assumption loses its validity when a human who is a social being makes a decision or choice in real life. Situations such as limited options, emotional, cognitive and intuitive differences, or lack of sufficient information; have made it necessary to examine people's economic decisions sociologically and psychologically. As is known, taxes are the most important source of income for the sustainability of public services. In the studies carried out to increase tax compliance of taxpayers, psychological and behavioural factors have been started to be used in addition to classical economic models. Thanks to the new public policies to be created with behavioural public finance approaches, tax evasion and tax avoidance behaviours can be prevented and an increase in tax revenues can be achieved. Behavioral public finance approaches are tools that use low-cost and simple methods without any strain on taxpayers. These approaches are used in many public policy designs around the world. In this thesis, studies on tax compliance including behavioral approaches in 17 selected countries from around the world have been compiled. In these studies, it was determined which behavioral finance approaches were used. Then, which behavioral public finance approaches are used in these studies are examined. When the studies examined are taken as reference, it has been determined that establishing the necessary units and carrying out studies for the use of such applications in Turkey will increase voluntary tax compliance. Keywords: Tax, Tax Compliance, Behavioural Public Finance, Behavioural Public Policies, Behavioural Economics