EFFECT OF TAX EVASION: BOSNIA AND HERZEGOVINA AS A FOCUS
Saudin Terzica, Jelena Ljubas Curakb
aUniversity of Vitez, Faculty of Business Economics, Bosnia and Herzegovina, saudin.terzic@unvi.edu.ba
bUniversity of Vitez, Faculty of Business Economics, Bosnia and Herzegovina jelena.ljubas@unvi.edu.ba
Abstract
In most transition countries, tax evasion is an enormous problem. In Bosnia and Herzegovina, it is a widespread and persistent issue that affects all layers of society. This places additional strain on an already fragile economy, undermines the rule of law, and erodes public trust in institutions. This study analyzes the scope and impact of tax evasion on the country’s development, aiming to provide a clearer understanding of the problem and offer practical solutions. At the core of this study is an examination of public attitudes toward tax evasion, with a particular focus on whether these views have significantly changed over time. The analysis compares survey responses from 2016 and 2024 to identify trends and shifts in the perception of tax evasion in Bosnia and Herzegovina. Tax evasion remains one of the most persistent and damaging challenges facing Bosnia and Herzegovina. It affects not only the country’s economic development but also the integrity of its institutions, the fairness of its society, and the public’s trust in governance. This analysis examines public perceptions of tax evasion from 2016 to 2024, revealing significant trends and shifts in how citizens understand and respond to this issue. Key areas of concern include the role of tax evasion in hindering socio-economic progress, eroding social values, contributing to inequality, and undermining cooperation between taxpayers and institutions. The findings also highlight growing recognition of poor education as a root cause and note changes in attitudes toward tax complexity. As public awareness and concern increase, these insights offer a critical foundation for designing targeted reforms and building a more transparent and accountable tax system.
Keywords: Finance; Business law; Taxation; Tax policy; Tax evasion
To be cited as: Terzic, S. and Ljubas Curak, J. (2025) Effect of tax evasion: Bosnia and Herzegovina as a focus. International Journal of Management Courses, 27(1), pp. 43-51.