IDEAS home Printed from https://ideas.repec.org/a/vrs/poicbe/v11y2017i1p523-531n56.html
   My bibliography  Save this article

Crackdown on tax evasion – improving ways of coordination between the tax authorities and automatic exchange of information developments in Romania

Author

Listed:
  • Ioniță Claudiu

    (The Bucharest University of Economic Studies, Bucharest, Romania)

  • Ibadula Birol

    (The Bucharest University of Economic Studies, Bucharest, Romania)

  • Vlad Cristina

    (The Bucharest University of Economic Studies, Bucharest, Romania)

  • Brezeanu Petre

    (The Bucharest University of Economic Studies, Bucharest, Romania)

Abstract

In an effort to reduce the tax transparency and banking secrecy, the Organisation for Economic Co-operation and Development (“OECD”) has been taking the lead on the battle against cross-border tax evasion, seconded by the Internal Revenue Services (“IRS”) of the United States of America (“USA”), the G20 and the European Commission. Understanding the power that is brought by information and knowledge, the international community proposed adapting the exchange of information tools that were available to them and extending them to a worldwide level. As a result, the Common Reporting Standard (“CRS”) and the Foreign Account Tax Compliance Act (“FATCA”) reporting standards were born. This paper aims at analyzing the improvements in automatic exchange of information brought by the CRS and FATCA standards, together with its limitations. An important section of this paper shall be dedicated to the role that Romania plays in the international efforts of fighting tax evasion, together with the tools and procedures developed in order to sustain the reporting standards. In order to analyze the effects of the CRS and FATCA, it is essential to understand the pros and the cons of the international cooperation on tax matters and its available tools before the CRS and FATCA were created. As there is limited previous literature on the subject, the methodology of the research will consist mainly of analyzing the guidelines issued by the international public body representatives and of the current legislative framework. The main finding of the paper can be considered the fact that the new developments in the automatic exchange of information field can represent a huge step forward towards limiting the tax evasion activity, however, one should be reserved due to aspects such as compliance costs, protection of private information, data gathering and processing techniques and tax residency uncertainty. Further analysis is required when the automatic exchange of information results will be available in order to update the reservations of the paper.

Suggested Citation

  • Ioniță Claudiu & Ibadula Birol & Vlad Cristina & Brezeanu Petre, 2017. "Crackdown on tax evasion – improving ways of coordination between the tax authorities and automatic exchange of information developments in Romania," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 11(1), pages 523-531, July.
    • Handle: RePEc:vrs:poicbe:v:11:y:2017:i:1:p:523-531:n:56
    DOI: 10.1515/picbe-2017-0056
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/picbe-2017-0056
    Download Restriction: no
    File URL: https://libkey.io/10.1515/picbe-2017-0056?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gabriel Zucman, 2013. "The Missing Wealth of Nations: Are Europe and the U.S. net Debtors or net Creditors?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(3), pages 1321-1364.
    2. Constantin ENEA & Constanta ENEA, 2010. "Reflections Over the Financial Crisis and Tax Heavens Influence in Launching it," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 247-262, November.
    3. David S. Kerzner & David W. Chodikoff, 2016. "International Tax Evasion in the Global Information Age," Springer Books, Springer, number 978-3-319-40421-9, April.
    4. repec:hal:pseose:halshs-01053616 is not listed on IDEAS
    5. Roy A. Berg & Paul M. Barba, 2014. "FATCA in Canada: The Restriction on the Class of Entities Subject to FATCA," Canadian Tax Journal, Canadian Tax Foundation, vol. 62(3), pages 587-633.
    6. Philippe Bacchetta & María Espinosa, 2000. "Exchange-of-Information Clauses in International Tax Treaties," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 7(3), pages 275-293, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David M. Kemme & Bhavik Parikh & Tanja Steigner, 2017. "Tax Havens, Tax Evasion and Tax Information Exchange Agreements in the OECD," European Financial Management, European Financial Management Association, vol. 23(3), pages 519-542, June.
    2. Niels Johannesen & Gabriel Zucman, 2014. "The End of Bank Secrecy? An Evaluation of the G20 Tax Haven Crackdown," American Economic Journal: Economic Policy, American Economic Association, vol. 6(1), pages 65-91, February.
    3. Mika Nieminen, 2017. "Patterns of international capital flows and their implications for developing countries," WIDER Working Paper Series wp-2017-171, World Institute for Development Economic Research (UNU-WIDER).
    4. Thorvaldur Gylfason, 2019. "Inequality Undermines Democracy and Growth," CESifo Working Paper Series 7486, CESifo.
    5. Andreas Fagereng & Luigi Guiso & Davide Malacrino & Luigi Pistaferri, 2020. "Heterogeneity and Persistence in Returns to Wealth," Econometrica, Econometric Society, vol. 88(1), pages 115-170, January.
    6. Koijen, Ralph S.J. & Koulischer, François & Nguyen, Benoît & Yogo, Motohiro, 2021. "Inspecting the mechanism of quantitative easing in the euro area," Journal of Financial Economics, Elsevier, vol. 140(1), pages 1-20.
    7. Yannic Rehm & Lucas Chancel, 2022. "Measuring the Carbon Content of Wealth Evidence from France and Germany," PSE Working Papers halshs-03828939, HAL.
    8. Thomas Piketty & Gabriel Zucman, 2014. "Capital is Back: Wealth-Income Ratios in Rich Countries 1700–2010," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(3), pages 1255-1310.
    9. Elisa Casi & Mohammed Mardan & Rohit Reddy Muddasani, 2022. "So close and yet so far: the ability of mandatory disclosure rules to crack down on offshore tax evasion," WIDER Working Paper Series wp-2022-116, World Institute for Development Economic Research (UNU-WIDER).
    10. Kristin Forbes & Ida Hjortsoe & Tsvetelina Nenova, 2017. "Current Account Deficits During Heightened Risk: Menacing or Mitigating?," Economic Journal, Royal Economic Society, vol. 0(601), pages 571-623, May.
    11. James Alm, 2024. "Tax Compliance, Technology, Trust, and Inequality in a Post-Pandemic World," Working Papers 2404, Tulane University, Department of Economics.
    12. Clara Martínez Toledano, 2020. "House Price Cycles, Wealth Inequality and Portfolio Reshuffling," Working Papers hal-02876979, HAL.
    13. Broner, Fernando & Didier, Tatiana & Schmukler, Sergio L. & von Peter, Goetz, 2023. "Bilateral international investments: The big sur?," Journal of International Economics, Elsevier, vol. 145(C).
    14. Thomas Hemmelgarn & Gaëtan Nicodème, 2009. "Tax Co-ordination in Europe: Assessing the First Years of the EU-Savings Taxation Directive," Working Papers CEB 09-023.RS, ULB -- Universite Libre de Bruxelles.
    15. Juliana Londoño-Vélez & Dario Tortarolo, 2022. "Revealing 21 per cent of GDP in hidden assets: Evidence from Argentina's tax amnesties," WIDER Working Paper Series wp-2022-103, World Institute for Development Economic Research (UNU-WIDER).
    16. Matthew Smith & Owen Zidar & Eric Zwick, 2020. "Top Wealth in America: New Estimates and Implications for Taxing the Rich," Working Papers 264, Princeton University, Department of Economics, Center for Economic Policy Studies..
    17. John Guyton & Patrick Langetieg & Daniel Reck & Max Risch & Gabriel Zucman, 2021. "Tax Evasion at the Top of the Income Distribution: Theory and Evidence," NBER Working Papers 28542, National Bureau of Economic Research, Inc.
    18. Alejandro Esteller & Amedeo Piolatto & Matthew D. Rablen, 2016. "Taxing high-income earners: tax avoidance and mobility," IFS Working Papers W16/07, Institute for Fiscal Studies.
    19. Henrik Kleven & Camille Landais & Mathilde Muñoz & Stefanie Stantcheva, 2020. "Taxation and Migration: Evidence and Policy Implications," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 119-142, Spring.
    20. D.D. Evans, Martin, 2017. "External balances, trade and financial conditions," Journal of International Economics, Elsevier, vol. 107(C), pages 165-184.

    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:vrs:poicbe:v:11:y:2017:i:1:p:523-531:n:56. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    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.