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Quantification of the impact of corruption on the extent of tax evasion in Romania

Author

Listed:
  • Carmen UZLAU

    (Hyperion University of Bucharest)

  • Corina Maria ENE

    (Hyperion University of Bucharest)

Abstract

The target of this paper is to highlight the interaction between fiscal policy, tax evasion and corruption in the context of a corrupt economic and social environment. Having these considerations in view, we have assumed that the probability that a corrupt official in the tax administration is properly controlled and sanctioned by the workers of the anti-corruption division is minimal (tends to zero), so it can be considered negligible. This encourages the increase in the number of corrupt officials and the proliferation of tax evasion, which makes the possibility for a tax escapist to be checked and discovered by a corrupted officer in the control apparatus to be very high.

Suggested Citation

  • Carmen UZLAU & Corina Maria ENE, 2016. "Quantification of the impact of corruption on the extent of tax evasion in Romania," Hyperion Economic Journal, Faculty of Economic Sciences, Hyperion University of Bucharest, Romania, vol. 4(3), pages 3-9, September.
    • Handle: RePEc:hyp:journl:v:4:y:2016:i:3:p:3-9
    as

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    References listed on IDEAS

    as
    1. Sandmo, Agnar, 1981. "Income tax evasion, labour supply, and the equity--efficiency tradeoff," Journal of Public Economics, Elsevier, vol. 16(3), pages 265-288, December.
    2. Vito Tanzi, 1998. "Corruption Around the World: Causes, Consequences, Scope, and Cures," IMF Staff Papers, Palgrave Macmillan, vol. 45(4), pages 559-594, December.
    3. Mr. Vito Tanzi, 1998. "Corruption Around the World: Causes, Consequences, Scope, and Cures," IMF Working Papers 1998/063, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    corruption; economic development; tax evasion;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

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