Tax evasion - the forms of manifestation of tax evasion

Tax evasion represents the avoidance of taxation on a larger or smaller part.

taxable matter. As a phenomenon, tax evasion is encountered both at the level
national as well as international.

Depending on how it is carried out, tax evasion can be: evasion

carried out under the shelter of the law, the act of evasion is done in violation of the law, and is therefore illegal.

The subtraction made under the shelter of the law is possible because the legislation in different countries

allows the exclusion from tax incidence of certain income, parts of income, components of
averii, or of certain acts and facts that, under the strict compliance with the requirements of the principles
those who impose should not escape taxation.

Tax evasion based on the law can be avoided through correction, improvement and
the improvement of the content of the laws that made it possible.

Fraudulent tax evasion occurs on a large scale and is carried out with
violation of legal provisions, therefore based on fraud and bad faith. As a result, this
The antisocial phenomenon must be fought strongly, as it takes away a volume from the public budget.
important financial resources that could be used to cover some expenses of a certain nature
social or economic.

Frequently, fraudulent tax evasion occurs in various forms, such as: keeping
unreal accounting records; the deliberate destruction of documents that can help in ascertaining
the truth regarding the delivery of goods, the prices used, the commissions collected or paid, etc.;
the preparation of fictitious payment documents; unjustified modification of supply prices
and the costs of transport, handling and storage; the practice of certain delivery prices or
some commercial markup rates higher than those displayed, declared or
recorded in accounting; the preparation of false customs declarations for the import or export of
goods; the preparation of false tax returns, when knowingly not mentioned
only a portion of the revenues generated, etc.

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 In countries with extensive experience in taxation adapted to the requirements of a market economy,
Tax evasion (especially specific to VAT) can also be encountered in forms such as:

long-term fraud, which occurs when an economic agent, who has created in
a good reputation through behavior and results, suddenly stops payments declaring itself in
bankruptcy, after having previously ensured to transfer its profit to another country;

short-term fraud, which can be encountered when a new enterprise

established (with the hidden intention of obtaining money through false claims) submits to the tax authorities a
justified request for VAT reimbursement, but after the reimbursement, the company in question has
the activity stops, and the payer disappears;

the "Phoenix" syndrome, when a company with VAT payment obligations declares itself in a state
of bankruptcy or is liquidated, but another company appears with the same director. In this case, the authorities

the tax authority is responsible for trying to collect the tax from the bankrupt unit or
liquidated;

the 'Multiple Companies' syndrome occurs when multiple are registered

companies, including one ghost. The latter requests a VAT refund without having participated.
the collected money, after which it disappears;

insignificant manipulations that result in a series of changes

minor issues in accounting, such as: omission from the sum of some pages, recording
repetition of some incoming invoices, incorrect reporting, etc. All of these lead to the preparation of a
incorrect VAT account.

The definition and concept of tax evasion

The multitude of obligations imposed by tax laws on taxpayers has made it so that
stimulate at all times the ingenuity of taxpayers to invent various procedures of
I will evade tax obligations. Tax evasion has always been particularly active and ingenious.
for the reason that the tax authorities striking individuals and their property, affects them in the most sensitive interest:

monetary interest. Tax evasion is the most studied chapter in tax law.

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technicians, as well as theorists, journalists, etc. Nevertheless, despite everything that is written
about the causes, methods, scope, control, and penalties regarding tax evasion, no
There is a clear definition of this concept and the concept of tax fraud.

In Romania, Iulian Vacarel believes that tax evasion represents "the evasion of
the imposition of a part of the taxable matter, regarding the classification of this phenomenon, the author
specify that tax evasion can be legal (committed by a person under the protection of the law) and tax evasion

fraudulent (which eludes the law).

Tax fraud most often refers to a crime against the law, differing from
tax evasion which denotes a skillful use of the possibilities offered by law.

Legal or rather tolerated tax evasion expresses the action of taxpayers to

the law, resorting to an unforeseen combination of the legislator and therefore tolerated through the escape from

Seeing. It can only be possible due to an inconsistency or gap in the law and it's frequent.
especially in times when new forms of enterprises or new categories of taxes appear.
Taxpayers find certain means and exploit the deficiencies of the legislation to evade.
mod "legal" evading in total or in part the payment of taxes, precisely because of this
insufficient to the legislation, proceeding thus taxpayers remain within the strict limit of rights
Therefore, tax evasion that occurs under the protection of the law cannot be attributed to those who
benefits from her tracks, "the only one responsible for committing tax evasion through such means
being just the legislator, it can be avoided by amending or completing the law that
generate.

In practice, acts of evasion based on a favorable interpretation of the law are very
diversify based on the inventiveness of the taxpayer and the breadth of the law, but most frequently
the following are the practices of some commercial companies to invest a portion of their profit
in acquisitions of machines and equipment, each state grants tax reductions on
the decrease in taxable income from expenses for protocol, advertising, and publicity,
the establishment of amortization or reserve funds in an amount greater than is justified
from an economic standpoint, etc.

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 Tax evasion is understood as the action of the taxpayer that violates
the legal prescription aimed at avoiding the payment of the due tax. Tax evasion is
fraudulent when the taxpayer required to provide in support of their declaration
justifications, established them in an irregular manner, in order to deceive the tax authorities.

The taxpayer slides from error to the use of tax options, from simple abstinence.
the skillful manipulation of legal texts and finally, from abuse of tax laws to fraud
qualified. In practice, it is sometimes difficult to distinguish between unintentional accounting error and decision.

taken consciously in view of reducing the tax. In addition, the multifaceted notion of evasion
Fiscal are a content whose variable geometry prevents precise delineation.
the acts in accordance with the law and the acts contrary to the law. From this it follows that the limit between

The forms of legitimate and illegitimate tax evasion can only be traced on a case-by-case basis.

Concluding on the diversity of the concepts of legal and illegal tax evasion,
legal and illegal tax fraud, there is only one phenomenon that affects tax revenues
but the state budget, that of tax evasion which, depending on the report of the action to achieve
such tax rights can involve legal tax evasion and not legal tax evasion as well as
illegal tax evasion which is synonymous with tax fraud.

Ways and forms of manifestation of tax evasion

Due to the diversification of tax legislation, its validity for limited periods of time
time, sometimes changes occur and the continuous increase in the number of direct and indirect taxes
that must be borne by natural or legal person taxpayers, as well as, especially,
their exaggerated size has led over time to the finding of subterfuges on the part of
taxpayers' ability to evade payment to the state of the owed quotas, justifies the violations
you are liable for ignorance of the legislation in the field.

Evasion targets both direct and indirect taxes and refers either to
the reduction of amounts to be paid to the state, either due to non-full payment of these.

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 The phenomenon of evasion from paying taxes and fees to the state (understanding by state
all budgets as well as special funds), therefore tax evasion is characteristic of
the fall of a free market economy, and less of a directed, centralized, state-controlled economy.

This phenomenon gained momentum here after 1990, making intervention necessary.
the legislature that sought to stop this true scourge for the national economy. Tax evasion
Tax evasion is defined as "the act of withdrawing, by any means, in whole or in part, from payment."
taxes, fees and other amounts owed to the state budget, local budgets, the budget
social security contributions and special extrabudgetary funds by individuals or
juridical, Romanian or foreign, referred to as taxpayers,

Even though for a relatively short period the phenomenon had a tendency to diminish, it did not
He was stopped, continuing to exist even after the enactment of the law to combat tax evasion.
sometimes fiscal and in certain areas with even greater scope.

The causes of the emergence of tax evasion phenomenon

One of the most important causes of resorting to tax evasion is the tendency to
light punishments from taxpayers, who use techniques ranging from the most elementary to
the most sophisticated, especially in cases where the level of taxes and duties is very high.
This phenomenon has been observed especially in the field of production, import, and marketing of some
products with a high level of excise duties such as cigarettes, alcohol, coffee, petrol, etc.

Another reason is the speculation on unclear or interpretative legislative provisions, which

from the birth of a so-called "legal evasion." This is possible by hiring by
tax evaders of some specialists in the legal financial field, often even
hired by the institutions responsible for law enforcement. These "secret" advisors are often
experts who contributed to the drafting of various normative acts or application rules of the acts
normative (which have recently become true legal regulations, sometimes replacing)
of the legislator).

The taxpayer's relationship with the tax (fiscal system) is primarily a problem.
the perception regarding the entire fee that he has to pay. This perception is

5
in a manner evident characterized by a feeling of constraint, even of oppression, which
explain permanent rejection of taxes. The appropriation of money, along with character, fundamentally selfish
of the man, who looks with evil eyes at everything that is taken from him by force, makes in the thinking of the evaders,

the very act of evasion to be, if not considered legal, at least justified. In times
ours, even in today's Romania (unlike, for example, that of the last century),
the taxpayer, thanks to the multiplication of financial advisory offices and accounting experts, thanks to
considerable development of tax documentation sources, has means of information
equally abundant and efficient fiscal measures as those of the administration.

The sectors where tax evasion has a high share are: profit tax, VAT.
and also on excise duties.

The most commonly used methods for tax evasion in the case of income tax
profit refers to:

reduction of the tax base;

non-registration of total income;
the transfer of taxable income to newly created companies within the group;
incorrect classification in exemption periods.

Tax evasion on VAT can occur as follows:

by the erroneous application of the deduction regime;

the exclusion of certain operations that fall within the scope of VAT from the tax base;
the non-reporting and non-payment of the value added tax related to advances
customer invoices;
incorrect application of the zero rate.

In terms of taxes, the modalities of evasion refer to:

reduction of the taxable base;

using lower rates than the legal ones;
the incorrect declaration of the actual operation in the case of products whose prices
excise duty bearers (especially in the case of alcohol) etc.

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 The motives for tax evasion are complex and hard to identify, among which are
numbering:

lack of knowledge, ignoring or incorrect and abusive application of tax legislation;

the resistance of taxpayers to taxes as an aspect related to fiscal civic duty;
the changes that have occurred in tax legislation, its complexity, as well as
some imperfections in the elaborate texts that have subjective determinants and even
abusive especially regarding the tax advantages in favor of certain
categories of taxpayers.

Among the causes of resorting to tax evasion are also issues regarding equipment.
with the necessary means with which the administration is faced in order to fulfill its duties
revenue (insufficient personal numeric and qualitative, calculation technique, other informative means,
updated organizational structure reflecting the new developments in the tax system, legal means,
procedures, etc.), inadequate remuneration of the control bodies in the field of detection and combating
tax evasion.

The techniques for tax evasion range from the simplest to the most complex.
complex. The simplest one is the non-registration, partially or entirely, of incomes.
based on not preparing documents for the sales made or services provided. This
the phenomenon is very difficult to control because later it cannot be proven, but only if
The perpetrators are caught red-handed. Another technique is used by importers or producers of
merchandise that undervalues goods by declaring very low values, sometimes even a tenth
part of the real value. Subsequently, these are invoiced to a fictitious company at a percentage
very little profit that in turn sells, either to another fictitious company or to a wholesaler at
a loan close to the market price. The wholesaler, which is usually the same company as
the importer also sells with a very small profit. In this way, sums are siphoned off
important representing VAT, corporate tax or excises.

Starting from the economic and social characteristics of the transition, it is necessary that the system
fiscal control should be transformed and adapted to the new conditions characterized by the explosion in number
of economic agents, especially those with private capital, newly established during this period, as well as
the multitude of activities carried out by them.

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Forms of manifestation of tax evasion

There are several ways to manifest tax evasion, among them

counting:

1. Non-registration or partial registration of income sources

This method is practiced by both commercial companies and individuals.

authorized or unauthorized to practice a profession that generates income. We illustrate such examples.
situations:

For economic agents

From the field of production and service provision: the failure to record inputs (materials)
prime, labor force, utilities) and therefore, the non-recording of produced outputs or services that
it is sold without documents, so the entire obtained value is collected without being
reflected as income. In such situations, the consequences of evasion have an impact on the following
revenues due to the state:

- the profit tax related to the income obtained from the exploitation of the products obtained and

unregistered
- the tax on unregistered dividends;
- value added tax related to income obtained and not registered;
- the excise duties related to the marketed products (in the case of excise-bearing products);
- the contribution to social and health insurance related to salaries paid and not recorded;
- the contribution to the pension fund for farmers, in the case of food products.

In the field of commerce: the non-registering of invoices for purchased goods

or the acquisition of goods without legal delivery documents followed by the sale of these
products and the non-registration of the income obtained. The consequences of tax evasion are approximately

the same as the ones above.

From the field of import of goods and services: smuggling of imported products
not registered with the customs authorities and subsequently realized without registering the income obtained.
this situation, the state's unrealized revenues consist of:

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 unpaid customs duty
value added tax on products introduced through smuggling;
customs commission
excise duties in the case of products bearing such taxes;
the profit tax related to the exploitation of products introduced by
smuggling, dividend tax;
road tax for the import of fuels and vehicles
the reduction of the customs value of imported products is a commonly used method for
the reduction of taxes and duties owed by the importer. This method consists of
the falsification of the original invoice for imported goods, and the procedure is practiced either in

complicity with the exporter, either solely at the importer's risk. In this situation it is not
it is not about a total tax evasion but about paying some taxes and fees lower than those
real.

In the event that the falsification of the external invoice is done with the knowledge of the exporter, then

he will receive a lower value from the Romanian partner for the exported goods.
situation, in order to recover the difference, the exporter issues a second invoice in which the object
these consist of the provision of various services, it being known that customs duties are not paid for them
they cannot even be detected by customs authorities, as important services are not provided
the customs import declaration. Such services provided relate to: financing
of the export
etc.

In the second situation, when the falsification of the invoice is not carried out with the knowledge of the exporter but

only at the importer’s risk, the recovery of the real value of the invoice is usually done through
the offset with other export operations from Romania in which the price is reduced exactly by
the value owed for imports whose price has been falsified.

For individuals

- authorized to exercise income-generating professions in the field of production, commerce

For services, the consequences of tax evasion are relatively identical to those for agents.
economic

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 - authorized to practice a free profession (lawyers, notaries, experts, accountants, doctors, architects)
, teachers, etc.) the consequence of evasion consists of not paying the tax on the income earned.
if not registered and in certain cases the contribution for health and for social assistance;
- unauthorized. The most well-known expression for such situations is the so-called "working on ".
black, in the case of those who work for a commercial company, but without having legal forms
of employment, or in the case of those who carry out income-generating activities but without being
legally authorized to perform them. Mainly, here are the services carried out by
unauthorized craftsmen, tutoring, medical consultations, legal consultancy, accounting
financial, commercial, etc. The main consequence of tax evasion is non-payment
income tax (salaries), social security contributions, healthcare contributions, etc.

Phantom or fictitious companies are another way of carrying out tax evasion.

These companies registered at a fictitious address or moved their real headquarters to a fictitious one.

they are specially created for practicing tax evasion.

As they appear, they are registered legally, once they have incorporation documents, stamps, and an account.

in the bank, etc., they can obtain special regime documents (invoices) from specialized units
receipts, shipping notices, etc.) which later, by concealing the real headquarters, can be used either in
proper names, whether they can be sold, obviously stamped with the stamp of the fictitious company.

It has been found that such companies are usually formed for a single business.
of magnitude, after which they disappear. Associates or shareholders are often foreign citizens who use
current for identifying false or falsified documents. Such a situation arises through
the transfer of the company by the true owner to certain individuals, usually foreigners, without
completing the formalities at the Trade Register and at the Ministry of Finance, so that in
The real records are found with the former owners (and administrators) of the company and not with the actual ones.

The latter, being in a position of anonymity, will use the company's documents acquired in
businesses that are never registered in accounting and therefore no tax is paid
to the authorities.

The detection of the new owners of the company becomes very difficult, if not impossible,
especially as the new owners, after they "pulled the heist," leave the country, whether they are Romanian citizens.
whether they are foreign citizens.

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 3. The establishment of offshore companies in countries considered tax havens represents a
a more elevated and recent form of tax evasion.

Offshore companies are companies established in tax haven countries and are not allowed to
I only conduct transactions with foreign countries, so I cannot engage with economic agents.
indigenous. The main characteristic of tax havens is not paying any taxes.
to the local authorities (apart from the authorization fees), or these taxes are extremely
reduce.

Tax evasion through offshore companies is practiced following the following procedure:
an exporter, let's say from Romania, carries out an export in which the price is reduced. The difference
The actual price is collected in the account of the offshore company through re-export at the true value. This
the difference is not taxed in any way in the tax haven country, so it can be transferred to
exporting country, namely in Romania, in a personal account and used at the discretion of
the holder, without paying any tax on the income obtained from this export. Apparently this
The scheme, likewise used, falls into the so-called legal tax evasion.

Tax evasion at the national level

National tax evasion occurs within the borders of a state and can be both artisanal,
both industrial.

Artisanal tax evasion is primarily characterized by the fact that it is defined as

Putin on the technical modalities of achieving or the extent of tax evasion from payment
to the state budget, as well as the isolated manner, on their own, of the actions of its authors. The one who

commit artisanal fraud act alone or at least without resorting to an organization with
this purpose. This form of evasion is the one encountered daily. The examples are
multiple, merging from a simple decrease in the real selling price of a property or import

11
of goods not declared, up to the omission of recording income in accounting or
increase in expenses.

Industrial tax evasion manifests itself through the use of complex procedures and
ingenious legal arrangements. It is achieved through a division of the act of committing a
I defrauded within an underground network, which aims to support and cover fictitious operations.
Several individuals or legal entities are involved. The principle from which it starts is simple.
Tax verifications result in the determination by the control authorities of the existence of
concordance between accounting records and supporting documents represented by invoices, receipts
Command, etc. To carry out tax evasion safely, the aim is to achieve concordance.
among these, with the help of fictitious supporting documents provided by specialized organizations.
In Romania, this type of tax evasion is that of imports, particularly of cigarettes, coffee, and
alcoholic beverages, for evading customs duties and related excise taxes (smuggling).

Aspects regarding tax evasion in Romania

Tax evasion, along with corruption, is the most discussed economic and social phenomenon.
In the current period, starting with the ordinary citizen, in their dual role as taxpayers and
but also to the sphere of politics at the top of Romanian society.

Tax evasion in our country has become such a real and widespread phenomenon that it seems not to
I do not disturb anyone with my daily presence in all income-generating areas (except for
maybe on the salary paid by the state).

If we are to accept the idea that the existence of tax evasion, as a phenomenon, is a sign of
democracy, thus the young democracy of Romania in the 1990s fully manifested itself, leaving it
to this phenomenon a wide-ranging field of action, and if the decision-makers, the tax legislation, and those assigned to it

they did not explicitly support it, but at least the attempts to limit its proportions were
quite inefficient.

In support of these statements, the following arguments come, causes that have led to
the amplification and maintenance of tax evasion at relatively high proportions in GDP mass and of
fiscal revenues

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 Ø the cumbersome drafting of a tax legislation that has proven to be full of gaps,
incoherence and imprecision, especially within the legislation in the field of taxation
the revenues of economic agents;
Ø the late appearance of the law to combat tax evasion (in 1994), as well
there is a certain inertia in applying it in the letter and spirit imposed by it;
Ø a relatively high taxation compared to the actual capabilities
contributive to the taxpayers, as well as with the aim of honestly forming
the capital that is acutely lacking among economic agents;

The concept of international tax evasion

With the strengthening of international economic relations and the development of relations between states
With different tax systems, tax evasion has begun to manifest as a phenomenon
international and not just at a national level.

International taxation became important with Romania's entry into the Union.
Europeana, thus in the case of a Romanian company that is part of an international group of
companies any analysis of the financial and fiscal situation must be done in close connection with that of
parent company. An efficient tax planning of the activity of a Romanian company must
consider both the taxes and fees applicable in Romania, as well as those owed in
stranger.

The methods of carrying out tax evasion are quite similar, the most common being interpretation.
the legal regulations in the most favorable way by the taxpayer or, better said, the circumvention
of these regulations.

Some states offer individual taxpayers the option to choose either for
the imposition concerning natural persons, whether for that applied to legal entities (corporations,
the company). The applicable tax rates on corporate income being lower helps
the individual taxpayer in generating an undeserved profit.

13
 The phenomenon of evasion from paying taxes and fees to the state (understanding by state
all budgets as well as special funds), therefore tax evasion is characteristic of
the fall of a free market economy, and less of a directed, centralized, state-controlled economy.

This phenomenon gained momentum here after 1990, making intervention necessary.
the legislature that sought to stop this true scourge for the national economy. Tax evasion
Tax evasion is defined as "the act of withdrawing, by any means, in whole or in part, from payment."
taxes, fees and other amounts owed to the state budget, local budgets, the budget
social security contributions and special extrabudgetary funds by individuals or
juridical, Romanian or foreign, referred to as taxpayers,

Even though for a relatively short period the phenomenon had a tendency to diminish, it did not
He was stopped, continuing to exist even after the enactment of the law to combat tax evasion.
sometimes fiscal and in certain areas with even greater scope.

The causes of the emergence of tax evasion phenomenon

One of the most important causes of resorting to tax evasion is the tendency to
light punishments from taxpayers, who use techniques ranging from the most elementary to
the most sophisticated, especially in cases where the level of taxes and duties is very high.
This phenomenon has been observed especially in the field of production, import, and marketing of some
products with a high level of excise duties such as cigarettes, alcohol, coffee, petrol, etc.

Another reason is the speculation on unclear or interpretative legislative provisions, which

from the birth of a so-called "legal evasion." This is possible by hiring by
tax evaders of some specialists in the legal financial field, often even
hired by the institutions responsible for law enforcement. These "secret" advisors are often
experts who contributed to the drafting of various normative acts or application rules of the acts
normative (which have recently become true legal regulations, sometimes replacing)
of the legislator).

The taxpayer's relationship with the tax (fiscal system) is primarily a problem.
the perception regarding the entire fee that he has to pay. This perception is
"fiscal", where numerous foreign companies are established towards which the realized profits are directed
on the territory of other countries, for tax evasion.

Tax havens - a form of manifestation of tax evasion

The term 'tax haven' conjures up images of beaches populated by billionaires.

they rejoice in their inexhaustible wealth that is hidden in a bank in Switzerland. In reality, things
they are very different.

Tax havens are located in 5 out of the 7 continents, not just in the Tropics.
they are not exclusively for the wealthy, most of those who make profits in these places own a
to have a modest one that I wish to enhance.

The term 'tax haven' refers to those administrative-territorial units that

provides very favorable conditions (no taxes are charged, or taxes are reduced on all or
only on certain categories of income, a high level of banking or commercial secrecy, requirements
minimum from the Central Bank and no restrictions on currency exchanges)
the development of capital.

The purpose of these 'tax oases' is simple to understand: to pay less, to earn more.
mult.

Specialized literature has classified them into 5 types, in a tax haven.

One can choose the fiscal residence, the place of establishment of the working base, one can live, one can
you earn money or you can obtain citizenship.

The countries, considered tax havens, represent a refuge for all companies that
allows beneficiaries to reduce or even completely eliminate the taxes they are subject to, in
deplina legality.

A state is considered a tax haven only if it meets the following characteristics:

Low taxation is the most important characteristic of a tax haven, thus

most of the territories considered tax havens impose taxes only on certain categories

15
of income, very low taxes compared to the countries of origin of those who use the tax havens
fiscal. However, we must not confuse a tax haven with countries whose governments offer
tax incentives for foreign companies and individuals to encourage their investments
thus promoting economic growth;

The protection of banking and commercial information is ensured.

Banking activity tends to play a more important role in the economy of a tax haven than in
the economy of a country that is not considered as such.

At the end of the 20th century, it was estimated that there were about 70 tax havens in the world.
In the meantime, some have disappeared, an example would be Hong Kong and Lebanon, others are on their way to

disappearance, here is the case of Switzerland and probably other places will emerge that can be exploited like

tax havens.

OECD presented a 'blacklist' mentioning countries that refuse to comply with standards
international for taxes and levies, including Costa Rica, Malaysia, Philippines and
Uruguay.

On the 'grey list' are the countries that have committed to respecting international standards, but
they have not yet signed the agreements in this regard. Here appear 38 countries: Andorra, Antigua, Aruba,
Barbados, Bahamas, Bahrein, Belize, Insulele Bermude, Insulele Virgine Britanice, Insulele
Cayman, Insulele Cook, Republica Dominicana, Gibraltar, Granada, Liberia, Liechtenstein,
Marshall Islands, Monaco, Montserrat, Nauru, Dutch Antilles, Niue, Panama, Saint Kitts and
Nevis, Sfanta Lucia, Sfantul Vincent si Grenadine, Samoa, San Marino, Insulele Turks si Caicos,
Vanuatu.

In a separate mode, the OECD is focusing on the following financial centers: Austria, Belgium, Brunei.

Chile, Guatemala, Luxemburg, Singapore si Elvetia.

The list of the 36 states that agreed and signed the standards was also presented.
international, among which some are: Argentina, Australia, Canada, China, France, Germany,
Greece, Italy, Japan.

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Measures to combat and prevent international tax evasion

To find methods to prevent the phenomenon, it is first necessary to identify it.

source of origin, which, in this case, is represented by the legislative regulations in
the fiscal field.

Thus, in order to improve the legislation, governments are trying to eliminate or at least to
reduce the possibilities of tax avoidance, with some states trying to limit the ways of using
aggressive and illegitimate tax schemes.

A growing number of member states have implemented provisions of the conventions (both
general and specific) to counteract abuses and to maintain anti-eviction legislation
in their internal legislation.

At the level of the European Union, efforts are being made to facilitate the exchange of information by creating

from European databases and by forming committees made up of tax authorities from several
dance.

Another tool that states have at their disposal to counteract the abuses of companies.
multinational is given by the transfer pricing methodology, according to which companies must
to ensure that transfer prices can not only be justified to the tax authorities, but also
to demonstrate that these reflect market prices.

17
Contents

The definition and concept of tax evasion............................................................................... 2

Ways and forms of manifestation of tax evasion
The causes of the emergence of the phenomenon of tax evasion5

The forms of tax evasion manifestation..............................................................................8

Tax evasion at the national level...................................................................................... 12
Aspects Regarding Tax Evasion in Romania12
The concept of international tax evasion....................................................13
Tax havens - a form of manifestation of tax evasion15
Measures to combat and prevent international tax evasion.............................................17

18
 Bibliography

Iulian Vacarel and the Public Finance Collective, 6th Edition, Didactic Publishing
Pedagogical, R.A. 2007,
Iulian Vacarel and the Collective-Public Finance, 6th Edition, Didactic Publishing House
Pedagogical, R.A. 2007,
3. Iulian Vacarel, "Public Finance - Theory and Practice", Scientific and Encyclopedic Publishing House
Bucharest 2004
4. Dr. Bofea P. Ion "Methods and Tax Techniques" Somesului Printing House - 2002
Dan Drosu Saguna, 'Tax Evasion Explained for Everyone', Onor Print Publishing
Bucharest 2003
6. I. Scarlat D. Vilaia, Menu M- ,, Banking Financial Control, Independenta Publishing
Economic Braila 2000

19
Law no. 241/2005 on combating tax evasion
8. Iulian Vacarel and the Public Finance Collective 6th Edition, Didactic Publishing House
Pedagogica
Bucharest Economy 2003
9. Claude Dauphin "The Truly Practical Guide to Tax Havens", ed. Tribuna
10. Methodologies referred to in the OECD Model Tax Convention (art. 9) and
how it was regulated by the internal legislation of our state (Law no. 571/2003
regarding the Tax Code, art. 11 para. (2) and the Order of the President of ANAF no. 222/2008

20