Tax compliance has become a very popular academic research topic. Understandably so, as all modern societies face the challenge of limiting tax evasion and the losses this phenomenon causes to government revenues. Given the increase in duties in the aftermath of the economic downturn affected by COVID-19, increasing taxpayer compliance is one of the main tasks for governments worldwide. This study aimed to identify critical gaps in understanding taxpayer heterogeneity. For this purpose, an exploratory factor analysis of taxpayer perceptual and attitudinal elements was carried out. Our analysis revealed six factors influencing taxpayer compliance with the tax system. Furthermore, the cluster analysis identified four groups of taxpayers, and significant differences between the clusters and the descriptive profile of each cluster were also found. The specificities of these clusters point to a conclusion that the time has come for policy makers to employ strategies that stimulate voluntary tax compliance with minimum cost to the tax system.

While human capital and foreign capital have received considerable attention in the study of economic growth, foreign remittances are less of a focus. Though some studies have identified the increasing importance of remittances, they have failed to analyze the relationship between foreign remittances and economic growth. The aim of this paper is to investigate the causal link between foreign remittances and economic growth in the Republic of Croatia over the period from 2000q1 to 2020q2. Any causal link is identified using Granger causality tests in vector autoregression models. In addition, variance decomposition and impulse response functions help determine any dynamic links. The empirical results suggest that, in the case of Croatia, there is a unidirectional causal relationship from foreign remittances to economic growth but no link in the opposite direction. The research results indicate that foreign remittances play a role in the Croatian economy and are one of the consequences of the large emigration processes that affected Croatia after joining the European Union.

Governments ensure majority of their revenues through taxes. If properly designed, taxation policies can be mechanisms of promoting sustainable economic development and inclusive economic growth. However, the main issue of government authorities remains achieving tax compliance among taxpayers. The question of noncompliance intersects different fields from public finance, law, ethics, and its complexity presents a challenge for the society in general. This study aims to examine the influence of chosen economic and psychological determinants on tax compliance. In order to identify the determinants of taxpayers’ behaviour, a total of 862 questionnaires were administered and collected directly from Croatian taxpayers. Partial least squares structural equation modelling (PLS-SEM) was applied to analyse the survey data. The results suggest that social norms and tax morale influence taxpayers’ compliance significantly. Overall, findings of this study contribute to the better understanding of tax compliance and its determinants in the context of a genuine paradigm shift in the field. This emphasizes the importance of including and exploring psychological determinants in tax compliance analysis.

The purpose of this study is to empirically examine whether taxpayers’ age, gender, income, and education level impact their (non)compliance. It expands the analysis through the investigation of the moderating role of selected sociodemographic variables. This research was operated in Croatia and in total it comprised 862 fully completed questionnaires. Based on this sample of individual taxpayers (income tax), to interpret the obtained results, OLS regression analysis was employed. The moderation model has been used to explore the influence of sociodemographic variables on tax compliance. The study discloses several results. First, it demonstrates that taxpayers’ age, gender, and education level are significantly associated with their compliance behaviour. In addition to this, the results confirm moderating role of gender, education level, and income level on chosen tax compliance determinants. The findings of this research contribute to policy implications in understanding the groups that require additional attention to create adequate and efficient fiscal strategies.

In a dynamic market, the city has become a main source of competitiveness, along with financial and economic benefits. Due to the processes of digitalization, a new concept has been developed, namely smart cities. This concept delivers economic and financial potential, not only to cities, but also to urban and local economic development. Therefore, to ensure the establishment of this concept, local government units, i.e., cities, need to have enough financial resources. In addition, the fiscal capacity of their local budgets should be sufficient. The objective of this paper is to evaluate the fiscal capacity of large cities in Croatia over the 2016-2018 period, as well as to present the financial support through funding schemes for the establishment of smart cities. After calculating the level of fiscal capacity of large cities, the analysis revealed interesting results. Only four large cities (Split, Rijeka, Zadar and Pula) achieved positive fiscal capacity in the observed period. This provides evidence of fiscal performance and fiscal capacity for the establishment of smart cities. This concept will enhance the quality of life, stimulate economic growth, sustain local government budgets and create new value for both investors and the local population.