UNDERGROUND ECONOMY AND THE TAX EVASION IN ROMANIA

Authors

• Cristian Nicolae

Abstract

The paper present the features of the underground economy in Romania and the factors’ contribution to its formation: undeclared labour of the formal sector (enterprises), value added tax evasion, and the under-reported incomes of the small entrepreneurs’ sector (family associations and self-employed). The tax evasion for the main budget revenues is estimated starting from the NIS - based valuations of the underground economy. Annual reduction of the undeclared labour with 10% - 15% could provide the necessary budget revenue for the implementation of fiscal relaxation measures, such as reducing the flat tax or the employers' security contribution.

Keywords: underground economy, undeclared labour, tax evasion, degree of compliance

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APA: Cristian Nicolae (2014). UNDERGROUND ECONOMY AND THE TAX EVASION IN ROMANIA. Internal Auditing & Risk Management, Vol. 34, No. 34, pp. 235-240.

BibTeX:

@article{cristiannicolae2014374,
  title = {UNDERGROUND ECONOMY AND THE TAX EVASION IN ROMANIA},
  author = {Cristian Nicolae},
  journal = {Internal Auditing & Risk Management},
  year = {2014},
  volume = {34},
  pages = {235----240},
  doi = {}
}

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