0000000000082109
AUTHOR
Ioan Cosmin Pițu
THE IMPACT OF TAX COMPETITION AND HARMONISATION IN THE EU IN RELATION TO FISCAL OPTIMISATION
Fiscal competition and harmonisation are topical issues and the controversy generated by preferences for one or the other is due to the effects they generate in the economies of the EU member states. The practice of tax competition to a smaller or larger extent by some of the Member States is often identified with tax optimisation practices. Thus, in the economies of developed or emerging countries, the effects are both on the labour market, in the collection of indirect taxes (VAT or excise duties), but also in the transfer of profits versus transfer prices. The European fora are working hard for the uniformity of European legislation, but also to determine the governments of the Member St…
Tax Evasion: Part of the Underground Economy in Romania
The economies of developed or emerging countries have a component not subject to the eyes of the authorities, the underground economy, the size of which is likely to produce many imbalances and inequities. The attempt to mitigate state revenues by exploiting legislative imperfections or by using ingenious methods to avoid the payment of taxes is called tax evasion. The weight of the underground economy in Romania’s GDP is significant, with the percentage ranging from 22.4% to 28.4%. The European Union average is 10 p.p. lower than the level at which Romania is located, at the opposite end being Austria, Luxembourg and the Netherlands. The underground economy is predominantly dominated by bl…