A decision support model for tax revenue collection in Greece

► We propose a parametric Markov-based DSS model for tax evasion by Greek firms. ► An alternate tax option used by the government raises the incentive for tax evasion. ► We compute the firm's optimal behavior given the parameters of the tax system. ► Our model is used to identify tax parameters which are effective and fair. ► In today's setting, it is optimal for a risk-neutral rational firm to evade taxes.