Our objective is to investigate the determinants of tax avoidance in Romanian companies in 2013-2017. Our initial sample comprises 236 privately owned companies that are payers of profit tax and have been found guilty of tax evasion. This was matched with 236 'compliant' companies structured similarly by industry, whereas the final sample comprises 1674-year-observations. We defined 'compliant' those companies that have never been prosecuted for tax evasion. Our main finding is that larger companies with lower financial performance and lower leverage ratio are more inclined towards tax avoidance. The geographical region and the industry sector in which companies operate in are also determining their tax avoidant-behaviour. Surprisingly, the fiscal regulations amended starting with 2016 did not lead to an apparent exacerbation of tax avoidance among profit tax payers.

No abstract

The group's consolidated financial statements includes those entities that the parent entity controls, all joint ventures where the parent has joint control and all associates where the parent exercises significant influence. IFRS specify the levels of ownership that are presumed to convey control or significant influence to a parent or investor, but these must be supported by facts.Parties are related if one has control or significant influence over the other. Significant influence is relevant when it relates to financial or operating decisions. The existence of control or influence can affect the terms on which the two parties transact. An understanding of the relationship and the terms on which two related parties have transacted is therefore relevant in understanding an entity's financial statements.Entităţile pot să controleze sau să exercite o influenţă notabilă asupra altor entităţi. Controlul sau influenţa notabilă au acţiune în ce priveşte politicile operaţionale şi financiare ale entităţilor. Astfel de entităţi se încadrează în categoria care desemnează părţile legate.