Licit Tax Evasion And Its Implications

Tax evasion represents, undoubtedly, the central vector of underground economy, which, in interaction and interdependency with the other specific components of economic-financial criminality, gives the true amplitude to the informal side of economy. Tax evasion is one of the complex, extremely important, economic-social phenomena which countries nowadays are faced with and its undesired consequences are sought to be diminished, eradication being, practically, impossible. The effects of tax evasion are reflected directly on tax levels, they lead to distortions of the market mechanism and may contribute to social inequities due to the taxpayer’s different “access” and “inclination” to tax evasion. The actions carried out by the organised crime structures in the field of business, favoured by the legislative ambiguity and normative volatility, and, especially, by the weaknesses of the tax administration and coercion, lead to the disequilibrium of the supply and demand on markets, by means of the system of markets and parallel prices. Consequently, a reduction of the volume of public financial recourses occurs, “manipulating” (negatively) even the budget deficit.