[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/hyp/journl/v6y2018i1p3-9.html
   My bibliography  Save this article

Identifying the Existing Connections Between Tax Evasion and Corruption and Determining a Functional Link Between the Two Phenomena

Author

Listed:
  • Carmen UZLAU

    (Hyperion University of Bucharest)

  • Corina Maria ENE

    (Hyperion University of Bucharest)

Abstract
Informal economic exchanges are based on agreements that are inaccessible in the formal system, the object of which is to translate into restricted goods, access to decision-makers, influence on administrative decisions, or the enjoyment of preferential treatment in the bureaucratic system. Individuals have access to social connections within the institutional hierarchy through a system of „intercessions, acquaintances and relationships”. Favors start from getting a job, eventually in a government agency, priority in legal matters, preferential position in problem solving, and end to brokering in obtaining licenses, certificates, passports, driving licenses, identity cards, tax amnesty and so on. Corruption, a phenomenon specific to the underground economy, is a deliberate deviation from the legal standards materialized in the misuse of public resources by official persons for private purposes. It is a deviant phenomenon with important economic consequences whose motivation and mechanisms reside in the inner tensions of the individual who is unable to access legal ways of achieving personal goals. However, it should be pointed out that in most cases, tax evasion and corruption go hand in hand. Tax evasion does not exclude corruption, while reciprocal is also valid.

Suggested Citation

  • Carmen UZLAU & Corina Maria ENE, 2018. "Identifying the Existing Connections Between Tax Evasion and Corruption and Determining a Functional Link Between the Two Phenomena," Hyperion Economic Journal, Faculty of Economic Sciences, Hyperion University of Bucharest, Romania, vol. 6(1), pages 3-9, March.
    • Handle: RePEc:hyp:journl:v:6:y:2018:i:1:p:3-9
    as

    Download full text from publisher

    File URL: https://hej.hyperion.ro/articles/1(6)_2018/HEJ%20nr1(6)_2018_A1Uzlau.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Albu, Lucian Liviu, 2007. "Estimating the Size of Underground Economy in Romania," Working Papers of Institute for Economic Forecasting 070601, Institute for Economic Forecasting.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Iuliana Precupetu & M. Precupetu, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Romania," GINI Country Reports romania, AIAS, Amsterdam Institute for Advanced Labour Studies.
    2. Albu, Lucian-Liviu, 2007. "A model to estimate informal economy at regional level: Theoretical and empirical investigation," MPRA Paper 3760, University Library of Munich, Germany.
    3. Albu, Lucian Liviu & Iorgulescu, Raluca & Stanica, Cristian, 2010. "Estimating Hidden Economy and Hidden Migration: The Case of Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 46-56, July.
    4. Alexandru Adriana Anamaria & Dobre Ion & Ghinararu Catalin, 2009. "Estimating The Size Of Romanian Shadow Economy Using The Currency Demand Approach," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 2(1), pages 623-631, May.
    5. Gheorghe ZAMAN & Zizi GOSCHIN, 2016. "A New Multidimensional Ranking of Shadow Economy for EU Countries," Romanian Journal of Economics, Institute of National Economy, vol. 43(2(52)), pages 14-33, december.
    6. Adriana AnaMaria Davidescu (Alexandru) & Ion Dobre, 2013. "The Impact of Unemployment Rate on the Size of Romanian Shadow Economy," Public Finance Review, , vol. 41(5), pages 578-607, September.
    7. Koziarivska Larysa & Oliinyk Andrii, 2006. "Effects of the 2004 Personal Income Tax System Reform on the Shadow Sector in Ukraine," EERC Working Paper Series 06-08e, EERC Research Network, Russia and CIS.
    8. Albu, Lucian-Liviu & Ghizdeanu, Ion & Iorgulescu, Raluca, 2011. "Analysing drivers of and barriers to the sustainable development: hidden economy and hidden migration," MPRA Paper 32810, University Library of Munich, Germany.
    9. Lucian Liviu ALBU & Ion GHIZDEANU & Mărioara IORDAN, 2008. "Informal Economic Estimation Models at Macroeconomic Level. Some Theoretical and Methodologial Considerations," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 1(2), pages 177-190.

    More about this item

    Keywords

    corruption; tax evasion; theories and models of corruption;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hyp:journl:v:6:y:2018:i:1:p:3-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iulian Panait (email available below). General contact details of provider: https://edirc.repec.org/data/fehypro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.