Global Efforts of Tax Authorities and Tax Evasion Challenge

Abstract

The global economy has become more and more integrated, and the multinational corporations are increasing their share on the global trade. The global multinationals can benefit the most from the way how the tax systems are set up and thereby, they can minimalize the tax base leading to paying lower or none taxes. Tax evasions represent a global challenge for the tax authorities seeking the way to combat them. The European Union has announced that the value added tax leak is around 50 billion euros lately. Tax havens existing worldwide offer tax planning opportunities enabling multinational groups of the companies to reduce their average worldwide tax rate. The objective of the submitted paper is to identify existing trends in the area of tax evasions and tax fraud, moreover, to focus on strategies and forms of combatting tax evasions. The strategies to detect potential tax evasion are highlighted to demonstrate governments' efforts worldwide to minimize negative consequences of tax frauds. After analysing and comparing selected countries-Slovakia, the Czech Republic, Hungary and Bulgaria empirical results are presented covering 2 recent years 2014 and 2016. The data of this economic crime started to be collected only recently, data are limited, and they were obtained from the OECD database and from the research data of the auditing company PriceWatersCoopers, etc. The partial, illustrative empirical research using the information from databases of big auditing commpanies is proving the relevance of tax issues which solution should not be postponed.

Factors influencing taxpayers to engage in tax evasion: evidence from Woldia City administration micro, small, and large enterprise taxpayers

“…Under the economic factors, business sanctions, business stagnation, and the amount of tax burden are considered as influential factors. On the other hand, legal factors, social factors, demographic factors, mental factors, and moral factors are the most important factors (Saxunova and Szarkova, 2018). Many factors determine the taxpayers' interest to engage in tax evasion.…”

“…This statement confirmed that every citizen should be subjected to the law of tax, and they are obliged to pay the tax from their income. To build large dams, to construct transportation infrastructures, and to provide quality social services for the community, collecting a tax from citizens plays a significant role for the governments (Saxunova and Szarkova, 2018).…”

“…Tax avoidance is the use of legal means to reduce one's tax liability while tax evasion is the use of illegal means to reduce that tax liability (Alleyne & Harris, 2017). Tax evasion is a danger to the community; the countries and international organizations have been making an effort to fight undesirable phenomena related to taxation, the tax evasion, or tax fraud (Saxunova and Szarkova, 2018).…”

"Forensic accounting skills and tax evasion detection in Lagos State, Nigeria"

“…Tax evasion has been a global phenomenon both in the developed and the emerging economies. Studies have established that tax evasion has become a universal threat in which the various governments and the respective tax authorities have been intensifying more efforts to minimize the effect on economic growth (Saxunova and Szarkova, 2018). Tax evasion is seen as money-spinning, which cost the United States of America an average of $458 billion per annum between 2008-2010 (Matthews, 2016).…”

Forensic accounting skills and tax evasion detection in Lagos State, Nigeria

“…Tax evasion has been a global phenomenon both in the developed and the emerging economies. Studies have established that tax evasion has become a universal threat, which the governments and the respective tax authorities have intensified more efforts to minimize the effect on economic growth (Saxunova and Szarkova, 2018). Tax evasion is seen as money-spinning, costing the United States of America an average of $458 billion per annum between 2008-2010 (Matthews, 2016).…”