Determinants of tax avoidance – evidence on profit tax-paying companies in Romania

Mocanu, Mihaela; Constantin, Sergiu-Bogdan; Răileanu, Vasile

doi:10.1080/1331677x.2020.1860794

Cited by 31 publications

(37 citation statements)

References 66 publications

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“…Results of our research shows that Polish entrepreneurs are not using institutions to seek rent but they have to abide or obey them to survive. Our results confirm the observations formulated by Sauka and Welter (2007) on the nature of unproductivity in Central and Eastern European countries, at the same time, they can be used to indirectly support evidence from Romanian research (Mocanu et al, 2021). Entrepreneurs that were directly questioned about S.N.s regarding tax evasion and bribery, perceive tax fraud as acceptable but at the same time do not accept bribes.…”

Section: Discussionsupporting

confidence: 90%

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It is not OK but it works – unproductive entrepreneurship, the case of Poland

Wasilczuk

Stankiewicz

2021

Economic Research-Ekonomska Istraživanja

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The concept of unproductive entrepreneurs was introduced to science by Baumol, who pointed out the differences in business output between countries. Unproductive behaviour of entrepreneurs is often a consequence of ineffective institutions used by entrepreneurs for rent seeking. The aim of this article is to examine subjective norms (S.N.) and attitudes regarding specified types of unproductive entrepreneurship, which in many cases takes the form of unethical or even unlawful behaviour among entrepreneurs in Poland. Examples of such behaviour are: bribery and tax evasion, burdensome lawsuits, often unfounded or lobbying. The structure of the research was based on Baumol's work while the research model was based on Ajzen's theory of planned behaviour (T.P.B.). In this article we argue that unproductive entrepreneurship in transforming economies is often forced by inefficient institutions and the desire to avoid bankruptcy. The results of the survey carried out among 270 Polish entrepreneurs indicated a permissive and subjective standard regarding tax evasion when the existence of their business is endangered, and more negative behavioural beliefs (B.B.) regarding the effectiveness of tax evasion than regarding the effectiveness of paying bribes (P.B.).

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Section: Discussionsupporting

confidence: 90%

“…However it needs time and knowledge, maybe that is why it is not so popular. The research conducted for the period 2013-2017 on tax avoidance in Romania indirectly shows that companies not at risk of bankruptcy are less prone to tax avoidance (Mocanu et al, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

It is not OK but it works – unproductive entrepreneurship, the case of Poland

Wasilczuk

Stankiewicz

2021

Economic Research-Ekonomska Istraživanja

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“…Kassa (2021) asserted that one of the leading drivers of tax evasion is economic factors. A study by Kong and Wang (201) corroborates this point, particularly, the researchers pinpoint income level, sources of income available to taxpayers, inspection rate, the financial penalty imposed for tax evasion, and the marginal tax rate as the main propagators of tax evasion (Mocanu et al, 2020). Middle-class people are more willing to comply with tax laws than lower and higher-income earners because they are more afraid of the financial and psychological consequences that they will suffer as punishment for tax evasion (Fuest and Riedel, 2009).…”

Section: Tax Evasion and The Causation Of The Phenomenonmentioning

confidence: 86%

Fiscal morality and the underground economy in countries of the European Union and the USA

Mititelu

Amzuică²,

Chiriac³

et al. 2022

TSSJ

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The research was conducted to explore fiscal morality and underground economy of European countries and the US. The study was based on the assumption that the growth rate of an economy has a significant influence on tax compliance. In addition, the research investigated the effect of other factors on tax compliance of various countries. The factors included life expectancy, GDP growth rate, expenditure on education, and proportion of people living below the median income. Tax revenue was used to represent the level of tax compliance. The nations considered for this study included Germany, Italy, France, UK, and the US. Data was obtained from the World Bank Database, for the period 1971-2020. The findings depicted that economic growth was negatively associated with tax revenue. However, life expectancy, education expenditure, and poverty levels had a positive association with tax revenue. The regression models indicated that Italy had the most suitable model for estimation of tax compliance of fiscal morality among the selected countries.

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“…In these results one can clearly observe the fear of getting into debt. Mocanu et al (2021) found that larger companies with lower financial performance and a 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-behavior.…”

Section: Discussionmentioning

confidence: 99%

Costs and Taxes in the Light of Financial Management in Companies Listed on WSE

Lyroudi

Bolek

2022

JoFFL

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The purpose of the article/hypothesis: The goal of this paper is to present costs and taxes as a part of financial management process in companies listed on the WSE. In the hypothesis it is expected that costs influence taxes paid by companies in a negative way due to the tax avoidance purpose attitude presented by managers, and as a result, both liquidity and debt levels are influenced. Methodology: Correlation coefficients and regression models are evaluated to find the answers for the research questions related to the relationships between tested variables. Results of the research: The correlation between costs and taxes is negative as expected, as well as their relationship with the liquidity. Contrary to the expectations, the correlation between taxes and costs is mostly positive, alike the relationship between liquidity and debt. Findings are characteristic for the Polish market that is rather conservative in the approach to taxes, liquidity and leverage strategies compared to other developed markets. These findings prove that liquidity and debt management issues are subjective and related to the market behavior such as tax evasion attitudes.

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Determinants of tax avoidance – evidence on profit tax-paying companies in Romania

Cited by 31 publications

References 66 publications

It is not OK but it works – unproductive entrepreneurship, the case of Poland

It is not OK but it works – unproductive entrepreneurship, the case of Poland

Fiscal morality and the underground economy in countries of the European Union and the USA

Costs and Taxes in the Light of Financial Management in Companies Listed on WSE

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