Tax Evasion: Consequences, Reduction

Abstract

Tax evasion is a major problem in Romania and has negative consequences on the economy and society. First, tax evasion leads to significant revenue losses for the state, which affects its ability to finance public services and infrastructure investments. In addition, tax evasion creates a competitive disadvantage for companies that pay taxes and fees, as they have to bear a higher tax burden than their tax-avoiding competitors.To reduce tax evasion, appropriate legislative and administrative measures are needed, such as simplifying the tax system, improving tax transparency, increasing the efficiency of tax collection and imposing more severe penalties for those who violate tax rules. Tax education can also play an important role in raising awareness of the importance of paying taxes and promoting a responsible tax culture.