Pregledni rad
https://doi.org/10.17818/DIEM/2021/1.19
THEORETICAL AND METHODOLOGICAL APPROACHES ON TAX EVASION
Maria Mihaela Postea
orcid.org/0000-0001-5400-9797
; Faculty of Economics and Business Administration, Babeș-Bolyai Universty, Romania
Sažetak
Measurement of an economic indicator or phenomenon starts by defining it first and determining its components. Tax evasion as a component of the underground economy is a phenomenon that is hard to be observed and estimated because of its hidden nature. To be able to compare the figures for tax evasion from different countries, there is the need for a definition internationally accepted. This paper aims to make a literature review on the phenomenon and to find a definition that is widely accepted. In this area, not only the literature review is important but also the legislation from different countries. We will look closely at the definition of tax evasion given by the legislation of different countries from the EU and the USA. In the literature, there are several methods to estimate the underground economy. There are direct methods (questionnaire), indirect methods (indicator methods), and statistical methods (MIMIC), but all of them have their shortcomings. In the paper, all the shortcomings of each method used in the present are discussed to estimate the underground economy. As a conclusion, we can state that at the present moment there is not a definition internationally accepted for the underground economy, making it hard to estimate and to compare the results from different countries. In addition, the methods used to estimate the phenomenon have advantages and disadvantages. None of the methods is better than the other. When estimating the underground economy, it is advised to use more than one method. At this moment it is safe to say that the link between theory and empirical estimation is still unsatisfactory.
Ključne riječi
tax evasion; underground economy
Hrčak ID:
261908
URI
Datum izdavanja:
7.9.2021.
Posjeta: 671 *