TAX EVASION: AN ANALYSIS OF THE COLLOCATION “PAY WITH MONEY, NOT WITH YEARS”

Delia Catarama ()

Theoretical and Applied Economics, 2008, vol. 11(528)(supplement), issue 11(528)(supplement), 65-71

Abstract: This paper analyses whether the adoption, in 2005, of a new law with drastic penalties for combating tax fraud had the expected results. I do this by an event study in the period 2003-2005. I computed the expected average sanction for a legal person in case of tax fraud. I found that the expected average sanction was of 43.57% of prejudice in 2003 reaching 5.59% of prejudice in 2005. I conclude that the collocation „Pay with money, not with years” was not connected to the reality, as in 2005 the average prejudice was of 8,000 euro, while the sanction with prison is for prejudices over 100,000 euros. Also, in the same year 2005, the sanction with fine was of 5.56% of the prejudice. Thus, I consider that the right collocation should have been you pay no money and no years”.

Keywords: tax policy; the analysis of governmental intervention; others (tax evasion). (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.asociatiaeconomistilor.ro/documente/Conferinta_FABBV_engleza.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:11(528)(supplement):y:2008:i:11(528)(supplement):p:65-71

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().