Many recently democratized countries in Central and Eastern Europe having escaped from communist rule and planned economies face pressing problems related to the notions of tax evasion trust and state capacities. Tax morale in changing political and economic contexts is of crucial importance. This raises a series of questions What are the conditions under which people agree to pay taxes Why do people avoid taxes To what extent do the reasons for tax evasion vary from one region to another The authors of this volume address these questions and try to assess the progress which has been made in Central and Eastern Europe with regard to improving tax morale through tax reforms and strengthening of extractive state capacities.