STUDY ON TAX REVENUES IN ROMANIA AS CONTRIBUTOR TO THE EUROPEAN UNION BUDGET

Abstract

Romania is a contributor to the EU budget. Some of Romania's tax revenues go to the EU budget. Romania collects adversely the taxes and fees because of tax evasion, which also affects the Community budget. Indicators that track the evolution of tax evasion and tax revenues were calculated: the effective multiplier of tax evasion, the structural homogeneity coefficient and the tax evasion share of the total tax revenues during 2006-2013 to observe the developments since EU accession. Tax evasion occurred most in the VAT then to the social insurance fund. Since joining the European Union VAT evasion increased, VAT revenues are much lower than tax evasion. If Romania’s taxes were collected at its maximum rate there would be no financial crisis. So the main effort should be directed at reducing VAT evasion and then the evasion related to the social insurance contributions.

Keywords

• tax revenues
• tax evasion
• Romania
• European Union