IDEAS home Printed from https://ideas.repec.org/a/ovi/oviste/vxxiiiy2023i2p170-174.html
   My bibliography  Save this article

The Impact of Tax Avoidance in the European Union

Author

Listed:
  • Laurentiu-Mihai Tanase

    (The Bucharest University of Economic Studies, Romania)

  • Maxim Cetulean

    (The Bucharest University of Economic Studies, Romania)

  • Norina Popovici

    (“Ovidius” University of Constanta, Romania)

Abstract

In the context of contemporary debates on fiscal and economic policy, the impact of tax avoidance in the European Union was a frequently discussed topic at the negotiating table. In this paper, we followed the inflows of foreign direct investments and corporate tax collected to the state budget, trying to find out if a state with a high tax rate from the European Union could have an amortized impact of profit shifting, due to foreign direct investment inflows, also tracking how the corporate tax collected at the state budget changes, as the respective state reduces taxes. Following the research, we found out that paradoxically, as the state decreased the tax rate, corporate tax collected increased and also in certain years, the level of foreign direct investment exceeded corporate tax collected, which would indicate an amortized impact of tax avoidance.

Suggested Citation

  • Laurentiu-Mihai Tanase & Maxim Cetulean & Norina Popovici, 2023. "The Impact of Tax Avoidance in the European Union," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 170-174, December.
    • Handle: RePEc:ovi:oviste:v:xxiii:y:2023:i:2:p:170-174
    as

    Download full text from publisher

    File URL: https://stec.univ-ovidius.ro/html/anale/ENG/wp-content/uploads/2024/02/20.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    tax avoidance; European Union; foreign direct investment; corporate tax;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ovi:oviste:v:xxiii:y:2023:i:2:p:170-174. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gheorghiu Gabriela (email available below). General contact details of provider: https://edirc.repec.org/data/feoviro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.