Causes of Tax Evasion and How to Reduce It
Marcel Suvelea ()
Additional contact information
Marcel Suvelea: National Agency for Fiscal Administration – General Directorate for Administration of Big Contributors
Hyperion Economic Journal, 2014, vol. 2, issue 4, pages 54-62
The level of taxation is influenced and determined by several factors such as: the performance of the economy at any given time, the effectiveness of financed from taxes public expenditure, property structure, public needs as determined by Government policy and approved by the Parliament, the degree of contributors’ understanding of budgetary needs and adherence to Government policy, the stage of democracy in one country or another, etc. These make that between tax level and its base, represented by the GDP, not to be a strict correlation On the State budget and public finance, the cases of tax evasion or avoidance may not have manifested but negative effects. In reality, even the potentiality of cases of tax evasion by taxpayers, adversely affect public funds through the necessary expenditure to be earmarked for the prevention and monitoring of the tax payers. The higher is the extent of the phenomenon of tax evasion, the more the public finances of a State will suffer. If this phenomenon is joined by a weak economy and a shaky fiscal system, the negative effects are augmented. It should also be pointed out another important aspect of feeble public finances: chances are that fiscal bodies to act in that tough situation under emergency and pressure status and to deceive this tension on the economy, making it more unfit to uphold degraded public finances.
Keywords: tax evasion; fiscal fraud; state budget and public finance (search for similar items in EconPapers)
JEL-codes: H2 H26 H3 (search for similar items in EconPapers)
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:hyp:journl:v:2:y:2014:i:4:p:54-62
Access Statistics for this article
Hyperion Economic Journal is currently edited by Iulian Panait
More articles in Hyperion Economic Journal from Faculty of Economic Sciences, Hyperion University of Bucharest, Romania Hyperion University, Faculty of Economic Sciences, Calea Calarasilor no. 169, district 3, Bucharest, 030615, Romania. Contact information at EDIRC.
Series data maintained by Iulian Panait ().