Acta Universitatis Danubius. Administratio, Vol 10, No 1 (2018)

The Practice of Combating Tax Evasion

Luca Iamandi, Gheorghe Vașcea

Abstract


Classical counterfeiting has lost momentum, when it was realized that higher profits with lower risks can be achieved by using economic instruments. Since tax evasion is the evasion by any means of payment of taxes and other amounts owed to the state budget, we appreciate that the business itself and the competition between traders are affected by this illicit phenomenon. Under such circumstances, it is not only the general interest of the state, society as a whole, and the personal interests of competitors competing against tax evasion. From this point of view, it is very difficult to maintain in the market, by making a fair competition, within the limits of the law, to a competitor who constantly resorts to tax evasion, because one who deliberately and voluntarily pays tax obligations has a profit net much lower in value compared to its competitor who, as a result of tax evasion, will benefit from a much higher net profit. We believe that for the fight against the evasion phenomenon it is necessary to keep up with the level of development of the technology and of the socio-economic environment.

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