Tax Evasion Dynamics in Romania Reflected by Fiscal Inspection Activities

The paper aims to provide a panoramic view of the dynamics of tax evasion in Romania, reflected in terms of fiscal inspection activities. The author used the official data published by the institutions with attributions on the line of identification and fighting against tax evasion (National Agency of Fiscal Administration and Financial Guard) with the view to reflect the real situation concerning the number of inspections, quantify and sanction tax evasion for 2003-2008 periods. Although the number of fiscal inspections and the number of tax payers who have violated the rules of fiscal discipline decreased compared with 2003, the frequency of tax evasion remained. At the same time, based on the data referring to the level and dynamics of the tax dodger phenomenon appreciations have been made regarding the fiscal discipline of the Romanian tax payer and to the attitude of the qualified institutions in discovering and sanctioning the fraudulent tax evasion. In this respect, the author observed that the level of willingness of tax legislation in relation to the Romanian tax payer has not changed considerably.The level of identified tax evasion reported to real GDP increased slightly. This situation can be interpreted as a success of institutions in charge of identification and fighting of tax evasion, a result of the increase of fiscal inspection number and detection probability, but also a result of GDP growth at a rate lower than the identified tax evasion. The author has also tried to find a causality relation between the option for tax evasion and corruption. The author found that a corrupt environment facilitates the decision to evade depending on detection probability, penalty system and bribery level as discouraging factors for tax evasion. The level of identified tax evasion is smaller than the real level of entire tax evasion, an important part being impossible to determine because of corruption.tax evasion, fiscal fraud, fiscal inspections, fiscal discipline,voluntary fiscal compliance, underground economy, corruption

SIZE AND IMPLICATION OF UNDERGROUND ECONOMY IN ROMANIA - A MIMIC APPROACH

Since the economic crisis affected the real economy in Romania, the official GDPdeclined by almost 5 percent in 2009 compared with 2008, 1.3 percent in 2010 against the previousyear and unemployment increased too. In 2011 a moderate growth of the GDP is expected butunemployment will further increase. Against this background the extent of the underground economy inRomania and its development over time are once again the subject of intense debate, as many peoplewill attempt to make up for loss of income in the official economy through greater participation in theunderground economy.The objective of this paper is to estimate the size of the underground economy in Romania by using theMultiple Indicators Multiple Causes (MIMIC) method. The MIMIC approach is based on the idea thatthe underground economy is not a directly observable measure, but it is possible to approximate itusing quantitatively measurable causes of working in the underground economy and using indicatorsin which underground economic activities are reflected. In addition, the paper aims at clarifying towhat extent the variables explain the size of the underground economy in Romania.underground economy, Multiple Indicators Multiple Causes (MIMIC), latent variable, structuralequation model

A Theoretical Approach for Dynamic Modelling of Sustainable Development

This article presents a theoretical model for a dynamic system based on sustainable development. Due to the relatively absence of theoretical studies and practical issues in the area of sustainable development, Romania aspires to the principles of sustainable development. Based on the concept as a process in which economic, social, political and natural environment are combined in order to sustain planet management, our goal is to promote an economic tool for Romanian decision-makers in order to evaluate scenarios and planning options.Comment: 5 pages, 3 figures, 6th IASME/WSEAS International Conference on Energy and Environment (EE'11), Cambridge, UK, February 23-25, 201

A Theoretical Approach for Dynamic Modelling of Sustainable Development

This article presents a theoretical model for a dynamic system based on sustainable development. Due to the relatively absence of theoretical studies and practical issues in the area of sustainable development, Romania aspires to the principles of sustainable development. Based on the concept as a process in which economic, social, political and natural environment are combined in order to sustain planet management, our goal is to promote an economic tool for Romanian decision-makers in order to evaluate scenarios and planning options.sustainable development, economic system, economic development, economic welfare, resources scarcity, natural environment

A Theoretical Approach for Dynamic Modelling of Sustainable Development

This article presents a theoretical model for a dynamic system based on sustainable development. Due to the relatively absence of theoretical studies and practical issues in the area of sustainable development, Romania aspires to the principles of sustainable development. Based on the concept as a process in which economic, social, political and natural environment are combined in order to sustain planet management, our goal is to promote an economic tool for Romanian decision-makers in order to evaluate scenarios and planning options

Romanian Vulnerabilities in the Current Financial and Economic Crises Context

The current global economic crisis was ignited in the financial markets of the major developed economies but soon the real economy was affected. The developing world, Romania in particular, has not been isolated from its impact. International trade and capital flows serve as a transmission mechanism that illustrated that the hypothesis of a de-coupling between the developed and developing world does not hold. Romanian economy mostly does not have fully developed financial systems and is less integrated into the global financial market, hence the initial expectation in some circles that our national economy would be isolated from the contagion of the crisis. This paper argues that this was an unrealistic presumption and that the disease had a serious fall-out in Romania. Consumer spending was cut back, investment plans were cancelled and stock levels were run down. The economic situation is serious. GDP has shrunk, the unemployment level is rising, investments are still slowing, lending is tight and budget deficits are growing fast. Fiscal policies implemented by our country are subordinated to our lack of necessary funding and access to. However, that generated a monopoly on this sector of the IMF. Also, a social crisis became imminent.system financial instability, financial and economic crises, recession

Monetary Policy Strategy in Romania

Choosing this research theme was made because some European countries went through aperiod of post-communist transition, moving from a planned economy to a type of market economy,which has been the emergence of new events in monetary policy. Thus, each country had todesignate a monetary authority to manage and control the monetary policy developments by usingmonetary policy strategy. Also, the fight against inflation is a prerequisite for stimulatingsustainable national economic growth

Transition from Educational System to Labour Market in Romania

AbstractThe issue regarding the transition from school to employment has become more important and actual within Romania's economic restructuring, at the same time with the more alarming manifestation of youth unemployment. These concerns are not specific only to our country, but they exist in all countries and get more and more complex dimensions, in the knowledge-based economic framework. The impact of a generation which suffers due to exclusiveness effects will act together with the political and social evolution that is going to mould Europe over the following years.After a brief presentation of the Romanian and European documents referring to the social inclusion of the youth, this work deals with an analysis of the youth's needs from the perspective of employment and the of the intervention capacity of different interested factors in Romania. The results provide a substantial support for distinct models of access to the labour market, regarding the layering of the exclusion, downgrading risk and labour market mobility of LM entrants in Romania