The Proportionality of Fiscal Sanctions and their Impact on Compliance: between Tax Law and Fiscal Ethics

Abstract

The concept of proportionality in fiscal sanctions constitutes an essential element of fairness and efficiency in the modern tax system. In the context of the Republic of Moldova—where the sanctioning regime has evolved within a framework situated at the intersection of tax law, public ethics principles, and budgetary imperatives - this study examines how the proportionality of fines and penalties influences taxpayers’ level of voluntary compliance. The paper advances an integrated approach, combining legal-normative analysis with a behavioural perspective, in order to identify the optimal balance between the coercive function and the preventive–educational function of sanctions. Through a comparative analysis of national and European tax legislation, the criteria of proportionality, predictability, and procedural fairness are assessed. In parallel, the research explores taxpayers’ perceptions of tax justice and the role of ethics in the relationship between the state and the taxpayer. Preliminary findings suggest that a sanctioning system perceived as disproportionate diminishes compliance and public trust in the tax administration, whereas a framework grounded in proportionality and transparency strengthens tax discipline and the legitimacy of authority. The paper’s conclusions provide recommendations for recalibrating tax policies towards a compliance model based on trust, tax education, and moral responsibility. UDC: [336.221.24+336.225.6](478); JEL: H20, H25