Tax Evasion, an Expression of the Underground Economy, and the Role of Romanian Tax Authorities in Combating the Phenomenon


  • Marius Oprea


economic scourge; tax gap; tax antifraud


The existence of discrepancies between the tax revenues foreseen in Romania's budget
and the revenues actually collected in a budget year implies the existence of a high level of underground
economy and, implicitly, tax evasion. With the deprivation of the State of its due revenues, the offer of quality
public services, which are indispensable for the good functioning of society, is also limited. In this context, the
role of the tax authorities in reducing this phenomenon becomes crucial and calls for firm action based on a
clear and coherent vision. Prior Work: The work presents, in a synthetic way, the notion of underground
economy and its main component, tax evasion, its incidence areas in Romania, the role of the tax authorities in
eradicating this phenomenon, as well as the evolution of the phenomenon in recent years, against the
background of changes in the structure of the tax authorities. Approach: In order to underline the role of control
structures in the fight against tax evasion, we have studied the situation in Romania, analyzing the dynamics of
the phenomenon in the last decade in the context of the reorganization of the tax authority. Results: Following
the study, the dynamics of tax evasion in recent years were outlined and a series of conclusions and
recommendations were formulated on how to improve this process in Romania. Implications: Academics and
researchers have a great responsibility on how they can support the eradication of tax evasion, whether in terms
of the workforce they train or the solutions they can offer to mitigate the phenomenon. Value: This study aims
to highlight the role of tax authorities in the process of reducing the underground economy in Romania and
invites readers interested in this topic to get involved by providing feedback to improve this process in Romania.






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