The paper aims to examine taxation in the EU in correlation with regional development measures implemented. We started with the EU vision on regional development. If during the 2007-2013 period, were pursued three major objectives (convergence, regional competitiveness and territorial cooperation), in the current 2014-2020 funding period, money is allocated differently between countries that are deemed to be more developed, in transition and less developed. These categories are set according to GDP per capita. Next we exposed the fiscal changes made in the EU in 2010-2011 period and then we corelate them with the strategy for regional development for five member states: Romania, Bulgaria, Czech Republic , Hungary and Poland. We used data reported by Eurostat regarding the evolution of unemployment rate and for the foreign direct investments in 2007-2012 period. We also brought up and changes required by the new Romanian Fiscal Code. According to it, measures such as reduction of income tax for new micro enterprises or extending the VAT reverse charge mechanism in many sectors of activity, are meant to encourage foreign capital inflows and also to increase the level of regional development. As a general conclusion, we found that there is a direct link between fiscal policy and regional development; fiscal measures implemented influence the level of unemployment, economic growth, and competitiveness in the private sector.
Apparently, defining fiscal behavior is a relatively easy approach, but in essence, this concept requires the research of several elements, both economic and psychological. The taxpayer is the component of the tax system that reflects the fiscal policy and, implicitly, its changes. Thus, research in the field has shown that two types of behavior can be identified by combining several economic, psychological, religious or cultural factors: fiscal compliance or fiscal non-compliance. The research ideea may be motivated by the growing importance of tax behavior and compliance subject, especially in the current economic situation, when taxation has become a controversy at any time and in any society, regardless of the degree of democracy. Moreover, tax compliance does not refer only to the economic aspects, but also to the behavioral aspects that influence the process of raising public taxes. The econometric study analyzes the fiscal correlation between the public debt and tax variables such as tax revenues from direct and indirect taxes or social contributions, conected to the dynamics of the gross domestic product and the scale of payments balance. The study is conducted for two groups of countries: developed and emerging countries. The purpose of this research is to identify both the impact of tax revenues on direct, indirect taxes and social contributions, and that of the dynamics of gross domestic product and scale of payments balance on public debt, showing how fiscal behavior is influenced by the two groups of countries and what factors contribute to this.
The paper begins with a short literature review regarding the public governance concept in the EU approach and its methods for establishing a common way to manage different situations for all member states; we discovered that the problems they confront with have to do with good governance and qualitative public administration. In the second part, we developed an econometric model for three Eastern European countries and we found a strong correlation between the total revenues from taxes and social contributions and total gross debt in 2002-2014 period. We ended the paper by emphasizing the conclusions obtained.
Florin Dumiter, Petre Brezeanu, Claudia Radu and Florin Turcas
Central bank independence represents the core element of assessing the complex relationship between government and central bank, having at background the fundamental issue of a free monetary policy decision-making process from the hands of the political circle. However, central bank independence is a multilevel concept within some social, economic and behavioral implications both for the central banks and for the society at whole. Central bank independence is needed in order to establish an autonomous central bank with a high degree of freedom in choosing its’ instruments, objectives, techniques and tactics. Moreover, a high degree of transparency for the public disclosure and monitoring of central bank operation and transaction is needed for the social barometer of the central bank. Consequently the central bank must have a high degree of accountability and responsibility vis - á - vis of the most democratic institution, i.e. Parliament. In this article it is presented a comprehensive study regarding the complex relationship between central bank independence and inflation by modeling these two monetary policy panacea, in order to make a fine tuning regarding the causal relationship established in a heterodox manner.
Florin Turcas, Florin Dumiter, Petre Brezeanu and Stefania Jimon
Business valuation is dealing with a series of difficulties, legislative and/or normative inaccuracies, as well as problems related to divergent results obtained by standard approaches. This material is synthesizing some of these problems, highlighting possible research directions. Each of the standard approaches is investigated, theoretically and practically analyzed, and the conclusions constitute a basis for developing new theories in the field of valuation.
Laurentiu Dumitru Andrei, Cristina Vlad and Petre Brezeanu
This article opens a suite dedicated to State Treasury financial structure optimization. It further develops our previous excursus on State Treasury mechanism, operation policies and practice, alignment to EU regulations, and the influence of fiscal pressure on the EU states economies.
This article concentrates on risk prevention and containment of the possible impact. It further describes the financing policy that has been adopted. The following section describes the effects of the applied policies and practice, as well as the accessed financial package.
We have included a lessons learned section, to outline what we strongly believe should achieved for enriching the data sets and processing automation - these being instrumental to ensure the accuracy and relevance of the decision process and actions.
We finally project the main theme of the future articles and to outline the need of competitive central administration partner for the national business community - which is tightly and ever tighter connected to its global counterparties.
Claudiu Ioniță, Birol Ibadula, Cristina Vlad and Petre Brezeanu
In an effort to reduce the tax transparency and banking secrecy, the Organisation for Economic Co-operation and Development (“OECD”) has been taking the lead on the battle against cross-border tax evasion, seconded by the Internal Revenue Services (“IRS”) of the United States of America (“USA”), the G20 and the European Commission. Understanding the power that is brought by information and knowledge, the international community proposed adapting the exchange of information tools that were available to them and extending them to a worldwide level. As a result, the Common Reporting Standard (“CRS”) and the Foreign Account Tax Compliance Act (“FATCA”) reporting standards were born. This paper aims at analyzing the improvements in automatic exchange of information brought by the CRS and FATCA standards, together with its limitations. An important section of this paper shall be dedicated to the role that Romania plays in the international efforts of fighting tax evasion, together with the tools and procedures developed in order to sustain the reporting standards. In order to analyze the effects of the CRS and FATCA, it is essential to understand the pros and the cons of the international cooperation on tax matters and its available tools before the CRS and FATCA were created. As there is limited previous literature on the subject, the methodology of the research will consist mainly of analyzing the guidelines issued by the international public body representatives and of the current legislative framework. The main finding of the paper can be considered the fact that the new developments in the automatic exchange of information field can represent a huge step forward towards limiting the tax evasion activity, however, one should be reserved due to aspects such as compliance costs, protection of private information, data gathering and processing techniques and tax residency uncertainty. Further analysis is required when the automatic exchange of information results will be available in order to update the reservations of the paper.
Petre Brezeanu, Florin Dumiter, Rodica Ghiur and Silvia Paula Todor
Throughout this study, we have shown the influence factors generating a significant impact on taxpayers’ tax behavior. We also analyzed the literature in the field, and the categories of factors that have a significant influence. Consequently, we have assigned a macroeconomic indicator in Romania, in an attempt to quantify the factors of influence. In this regard, we have built an econometric model of multifactorial regression and we have determined the impact of some elements such as: poverty, labor productivity, population confidence in state authorities, gross domestic product per capita on fiscal behavior, which was estimated through the proxy variable: tax rate. The empirical results obtained as a result of the multiple regression showed that there is a negative correlation between the fiscal behavior of the taxpayer, namely the tax compliance and the financial capacity, the labor productivity and the confidence the taxpayer has in the state authorities, while the behavior of the taxpayer the gross domestic product per capita we identify a positive correlation.
Laura-Anca Opreţ, Florin Marius Turcaş, Florin-Cornel Dumiter and Petre Brezeanu
This paper focuses on detailing the general coordinates regarding tax evasion and the necessity of creating a common unitary European legal framework. Accounting information might mirror erroneously in a certain measure the micro to macroeconomic tendency of fraud by showing a gross image of available resources. It is of the utmost importance to become fully aware of causes for illicit practices, ways to fight any fraud attempts and to evaluate the accounting mechanism that both creates and identifies tax evasion.
Silvia Paula Todor, Rodica Ghiur, Petre Brezeanu, Florin Dumiter and Marius Boiță
The fiscal policy is an instrument that collects resources for the state budget necessary to perform state functions; stabilize the economy; regulation of the economy and recovery growth. The most important instruments are taxes and taxpayers. Since 1989, with the transition to a market economy, a special tax policy has been known by excise taxes. Analyzing the case of Romania and the evolution of excise duties (hereinafter ED) conformity we created some regressions that illustrate the ED correlation in Romania between 2002 and 2015. The methodology used: three unifactorial regression models showing how ED impacts economic indicators such as GDP, power purchase expressed through the net annual average salary, and household final consumption expenditure. Moreover, each model has been tested and verified using statistic tests to give reliable results. In a first stage, we analyzed the correlation between GDP and consumption as endogen variable and ED, then we created another model that we kept ED as an independent variable, but we changed the dependent variable using the purchasing power as a dependent variable. Because according to the used tests we demonstrated that correlation coefficients are significant, we proceeded to explain them starting from fiscal policy and economic reality, own of these analyzed 14 years. In conclusion we highlighted below as the ED depends on GDP and consumption and the purchasing power can influence the ED. For future discussion and studies we intend to compare the results with other countries in different geographic areas in Europe