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Tax Evasion and the Impact on Economic Growth Acta Universitatis Danubius. OEconomica

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  • Shkendije Demalijaj Ukaj

    (European University of Tirana)

Abstract

The level of taxation is very important for the development of current and future of a country and fiscal policy should always be considered as an important factor in the behavior of participants and their ability to tax evasion and informality. Government fiscal policies can trigger tax increase under pressure, especially in situations such as economic crisis, inflation, unemployment, instability, when the burden of this obligation grows, its effects are considered to take them to tax evasion and informality (Dragomir. et al. 2011). However, these reasons do not relate to all the great presence of this phenomenon in Kosovo, taking into account the recent economic crisis has not reflected in the economy of Kosovo and the Kosovo tax burden is among the lowest in the region, but leading cause of tax evasion and informality can be considered above the corruption of public administration officials including tax and customs officials, insufficient staff for his fighting, weak rule of law, as well as lower fiscal culture for paying taxes. For this reason the scope of this paper will be the theoretical treatment of the informal economy and tax evasion in view of tax avoidance, meaning, characteristics and their effects on the economy and possible recommendations on these viewpoints.

Suggested Citation

  • Shkendije Demalijaj Ukaj, 2014. "Tax Evasion and the Impact on Economic Growth Acta Universitatis Danubius. OEconomica," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 10(6), pages 18-32, December.
  • Handle: RePEc:dug:actaec:y:2014:i:6:p:18-32
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    1. Georgeta Dragomir & Mihaela Nicolau & Ecaterina Necsulescu & Georgeta Modiga & Carmen-Marina Dragomir, 2011. "Approaches of Taxation under the Current Circumstances between Desiderata and Results – I," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 1(1), pages 110-122, March.
    2. Agha, Ali & Haughton, Jonathan, 1996. "Designing VAT Systems: Some Efficiency Considerations," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 303-308, May.
    3. Eugenia-Ramona Mara, 2012. "Fiscal Policy in the European Union – Present and Perspectives," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 2(2), pages 156-168, April.
    4. European Commission, 2013. "Taxation trends in the European Union: 2013 edition," Taxation trends 2013, Directorate General Taxation and Customs Union, European Commission.
    5. Caballe, Jordi & Panades, Judith, 1997. "Tax Evasion and Economic Growth," Public Finance = Finances publiques, , vol. 52(3-4), pages 318-340.
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    Cited by:

    1. Cordelia Onyinyechi Omodero, 2019. "Tax Evasion and Its Consequences on an Emerging Economy: Nigeria as a Focus," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 127-135, December.
    2. Bedri Peci, 2017. "Fiscal Evasion in the Republic of Kosovo," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 13(1), pages 29-39, February.

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