The Tax Evasion and the Underground Economy Affect the Confidence in the Economy
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Authors:
• Adrian Ducu MATEI, PhD Lecturer, email: ducumatei@yahoo.com, Afiliation: “Athenaeum” University of BucharestPages:
• 175|185 -
Keywords: trust, economic crisis, underground economy and tax evasion.
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Abstract:
Abstract\r\n\r\n The article highlights a major problem existing in both transition\r\n\r\n economies and developed economies respectively on tax evasion and the\r\n\r\n underground economy; the problem is that among these phenomena there is a\r\n\r\n close connection that makes it difficult to counter them. When they are\r\n\r\n perpetuated over a long period, it can be appreciated that the fight is a\r\n\r\n complicated one, the control strategies will have to be exchanged more since\r\n\r\n the phenomenon of tax evasion and the underground economy affects whether\r\n\r\n the partners’ confidence funders or outside investors.\r\n\r\n Internally the public confidence in the ability of developing economy\r\n\r\n lowers, perpetuating the unequal conditions of competition as a source of\r\n\r\n spread of social inequality in a world where globalization has not only\r\n\r\n beneficial effects. These are considered the most important features; along\r\n\r\n with the main sectors affected, their effect on widening inequalities in the\r\n\r\n constantly changing of Romanian society and the fight against these\r\n\r\n phenomena should be food for thought both in Romania but also in Europe.\r\n\r\n The insufficient concern on these issues, by their major significance, reveals\r\n\r\n that significant budget resources are "lost" from the state attention, and also\r\n\r\n have serious consequences that may not lead to ensure a decent standard of\r\n\r\n living and tend to generate a climate of social tension.\r\n\r\n The continuous restriction of these phenomena can and should be one of\r\n\r\n the priorities and the means to redress the financial public balance at\r\n\r\n European level but especially for Romania.\r\n