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Tax Evasion - Generating and Complementary Effect of the Shadow Economy

Author

Listed:
  • Ioana Lazarescu

    (Dunarea de Jos University of Galati, Romania)

  • Viorica Ioan

    (Dunarea de Jos University of Galati, Romania)

  • Costinela Fortea

    (Dunarea de Jos University of Galati, Romania)

Abstract

In last years, the phenomenon of tax evasion has grown significantly, with serious repercussions on the national economy. In this sense, the emergence of limited liability companies has favored a favorable environment for offenses with particularly adverse consequences both economically and socially. Therefore, tax evasion is the non-fulfillment of tax obligations by taxpayers. The shadow economy is one of the phenomena that influences the development of a country, with a negative effect on the economic and social development of that country. Lack of transparency, poor monitoring, and other causes have led to an increase in tax evasion from one year to the next. All these led Romania among the European states with the highest level of shadow economy. In this paper we analyzed the dimensions of Romania's shadow economy in the period 2009-2019.

Suggested Citation

  • Ioana Lazarescu & Viorica Ioan & Costinela Fortea, 2020. "Tax Evasion - Generating and Complementary Effect of the Shadow Economy," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 70-74.
    • Handle: RePEc:ddj:fseeai:y:2020:i:3:p:70-74
    DOI: https://doi.org/10.35219/eai15840409138
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    References listed on IDEAS

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    1. James Alm & Jorge Martinez-Vazquez, 2007. "Tax Morale and Tax Evasion in Latin American Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0732, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    2. Schneider, Friedrich G., 2007. "Shadow Economies and Corruption All Over the World: New Estimates for 145 Countries," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 1, pages 1-66.
    3. James Alm & Jorge Martinez-Vazquez, 2007. "Tax Morale and Tax Evasion in Latin America," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0704, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    4. Jay Pil Choi & Marcel Thum, 2005. "Corruption And The Shadow Economy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(3), pages 817-836, August.
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    Keywords

    Shadow economy; Tax evasion; GDP; VAT;
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