Economic-Political Causes of Tax Evasion (Theoretical Background) (original) (raw)

Selection and peer-review under responsibility of the IPMA. Tax evasion in Bosnia and Hercegovina and business environment

Global economic crisis and its consequences especially on the countries in transition has contributed to the trend of decreasing of economic activities, decreasing of employment and increasing the level of tax burden which is especially expresed in conditions of not favorably business environment. Tax evasion has been present in theory for many years, but in our practice until now it has not been significantly consideres and this is one of the research goals to answer what woud happen to total business and economic environment if we decided for radical fight against tax fraud with the goal of increasing public revenues on one side, and relief of economy and increasing of competitiveness both in the domestic and foreign markets, on the other side. Decreasing of tax frauds, before all, would positivly affect on the public sector in long-term perion because it would lead to growth and greater stability of public revenues (grater revenues of VAT as the most important tax form), would create conditions for new investment activity, which affected the growth of companies, and thus the overall growth of the economy.

Tax Evasion in Bosnia and Hercegovina and Business Environment

Procedia - Social and Behavioral Sciences, 2014

Global economic crisis and its consequences especially on the countries in transition has contributed to the trend of decreasing of economic activities, decreasing of employment and increasing the level of tax burden which is especially expresed in conditions of not favorably business environment. Tax evasion has been present in theory for many years, but in our practice until now it has not been significantly consideres and this is one of the research goals to answer what woud happen to total business and economic environment if we decided for radical fight against tax fraud with the goal of increasing public revenues on one side, and relief of economy and increasing of competitiveness both in the domestic and foreign markets, on the other side. Decreasing of tax frauds, before all, would positivly affect on the public sector in long-term perion because it would lead to growth and greater stability of public revenues (grater revenues of VAT as the most important tax form), would create conditions for new investment activity, which affected the growth of companies, and thus the overall growth of the economy.

An Estimate of Tax Evasion in Croatia

The definition of the underground economy in this work is a legal economic activity that is not reported for the purpose of avoiding the payment of taxation; the tax defaulter thus increasing his own personal benefit. Tax evasion is an unlawful manner of reducing the tax liability: for example, underreporting the income made or by stating inflated business deductions. In the case of tax avoidance, however, the taxpayer simply makes use of the opportunities provided in the law for the reduction of his or her tax liability. The consequence of an increase in evasion is the erosion of the tax base. A shortfall in revenue collected will result in a deficit that can be financed either by a further increase in taxation, which ultimately deepens the size of the underground economy and the inclination to evasion, or by borrowing, placing an extra burden on future taxpayers. The stability of the tax system is an important factor in the reduction of tax evasion. The transitional environment, h...

Effects of Tax Evasion and Tax Policy on Economic and Social Environment: The Case of Bosnia and Herzegovina

Applied Economics and Finance

Bosnia and Herzegovina (BiH) is still at an early stage in development of functional economic and social environment. “How do tax evasion and tax policy effect on economic and social environment?” This is one of the key issues that requires full attention of fiscal policy and is also the hypothesis of this study. Is tax evasion in direct correlation with the economic welfare of a society, social environment and economic activity? The effort to shed light on these questions can help in the implementation of measures and activities on the prevention and suppression of tax evasion.In the focus of interests of this study are two groups of respondents, the taxpayers on one side who make contacts with professional groups on the other side employed in tax administrations (inspectors). For the purpose of analysing the collected data, the statistical package of SPSS was used. The contribution of this research and the main research result indicate that tax evasion has multiplicative effects, ...

Tax Evasion in Romania through the Eyes of the Control Bodies

International conference KNOWLEDGE-BASED ORGANIZATION

Tax evasion does not have any temporal and spatial limits. It is a powerful enemy, making its destructive effects felt both upon the national economy, as well as upon that of the European Union’s, but also upon each of us, as individuals. This is why reducing tax evasion and the underground economy is one of the most important objectives included in the National Agency of Fiscal Administration’s (NAFA) strategy. The manner in which this major objective can be reached at a maximum is influenced by various endogenous and exogenous factors, such as: the transparency of the activity with the purpose of increasing the degree of confidence and increasing the fiscal morality of the taxpayer which influences the degree of conformity, self-improvement and the professionalism of the employees, the identification of new methods of risk analysis and investigation that could exceed the inventiveness of the tax dodgers. The study takes a current photograph of the level of evasion and the fields w...

Short Insight Into Tax Evasion in Romania

European Journal of Accounting Finance & Business, 2020

The continuous increase of the cases of tax evasion, together with the number of taxpayers who try, in different ways, to evade from the payment of the tax obligations, which led to the decrease of the national economy and the appearance of the budget deficit, is the motivation of choosing the theme of the article. The purpose of the article is to know the current situation of the impact of tax evasion on the current society, the need to combat and prevent tax evasion and how to prevent the phenomenon that causes negative effects in all states of the world, including Romania. The authors consider that, on this basis, they can define methods that could combat or prevent this phenomenon, those mentioned are not a specific purpose, the in-depth knowledge allows to analyse the negative evolution in terms of tax evasion and fraud, so far, so that they let see what they could implement to eliminate this evolution, especially in Romania. In making this statement, the authors take into account the fact that, the measures to prevent and combat tax evasion, involve changing the legislation in force, motivating the taxpayers and educating them, but also other measures as important as those presented above.

Contemporary Theories on Tax and Taxation Formulated in International Taxation and in Romania*

Economica, 2019

We could note the fact that all the theories related to taxes tend to justify their need, both for the state and for the taxpayers, hiding the fact that they are more favourable to the state than to the taxpayers. Having formulated these theories, the authorities strive to justify the extent of taxation and fiscal pressure; they want to demonstrate a certain horizontal and vertical fiscal equity, which in reality, most of the time, does not exist in practice. These fiscal theories have tried to prove, more or less scientifically, the increase of fiscal pressure by imposing new taxes and fees or by increasing the size of existing taxes, they have tried to motivate the quality of taxes as an instrument for regulating the economy, in the sense that they had to maintain inflation for certain periods at a certain level, they have sought to emphasize the need to redistribute income and wealth from taxpayers to the state. It is known, however, that the state, by means of its ruling parties...

Forms of Tax Evasion in Romania. Analytical Perspective

2011

This study brings to the fore an analysis of the phenomenon of tax evasion in Romania. The perspective is broad, with a descriptive substrate, originally founded by highlighting the dimensions that define this phenomenon; later, the perspective is materialized by the presentation of tax evasion schemes that often takes the form of real complex fiscal and also financial engineering. The purpose of this work consists in the awareness of practitioners, academics and the public of the tax evasion forms useful in order to identify precise modalities to combat it. Since the volume of funds subject to the phenomenon of tax evasion is greater, the negative effects of macroeconomic environment.

EURASIAN JOURNAL OF ECONOMICS AND FINANCE www.eurasianpublications.com TAX EVASION IN BOSNIA AND HERZEGOVINA: PERCEPTION FROM TAXPAYERS AND TAX INSPECTORS Saudin Terzic

EURASIAN JOURNAL OF ECONOMICS AND FINANCE, 2020

Tax evasion is more of a disciplinary problem, produced by numerous, big and turbulent changes. The growing problems with tax evasion are present all over the world and they require a global solution of the problem. Although tax evasion is a global phenomenon, this is also the issue that most developed countries in the world are dealing with, there are significant differences between individual countries, all depending on the legal order, the entire social system and it is depending from country to country, and this is especially evident among transitioning countries. The problem of tax evasion is particularly acute in Bosnia and Herzegovina (hereinafter BiH). The main research result indicates that tax evasion has multiplicative effects; by reducing tax evasion, the situation in public finances improves substantially. This article discusses tax evasion in BiH and the perception of taxpayers and tax inspectors towards tax evasion. In this line, this article presents the theoretical analysis of the phenomenon of tax evasion (which is not a goal in itself), including the empirical analysis factors that have the greatest influence on tax evasion by using logistic regression modeling method. The paper checks the main hypothesis by identifying the factors that affect tax evasion and by determining their significance and impact, it is possible to construct logit model for determining factors of tax evasion in BiH.

Tax Evasion, Prevention Measures and Detection Procedures - The Case of the Republic of Serbia

Proceedings of the 7th International Scientific Conference - FINIZ 2020, 2020

The subject of research is to determine the knowledge and understanding of the importance of tax evasion (TE) and prevented measures in the Republic of Serbia. The main findings of executed research in 2019 were: 1) the majority of respondents were aware of TE, 2) working illegally is the most common way of TE, 3) the majority of respondents said that they hadn't received the bill after every shopping, 4) all respondents stressed that some party should be penalized for not possessing the bill after shopping, 5) the majority of respondents answered that adequate tax propaganda was the way of educating tax payers, 6) the majority of respondents would not report any notice of any form of TE. The state and tax authorities should take measures in order to create win-win climate for all stakeholders in order to reduce TE.