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The objective of this research is to identify the determinants of tax avoidance and evasion for develop appropriate policy for public authorities in a challenging environment. In particular, the researcher creates the empirical model to check the relationship between the institutional quality and the level of tax evasion. In addition, the researcher makes a comparative analysis of the determinants of tax avoidance and evasion across the EU countries that can help Russian government creates new economic strategies in the Eurozone.