Tax Management Hierarchy – Tax Fraud and a Fraudster

To avoid fulfilling its tax obligation deliberately every year such entity’s behaviour is harmful to the society because the tax revenues fulfil the state treasury with the capital resources for public services. For years the number of international authorities and institutions that have been making efforts to eliminite the tax evasions or tax fraud has been growing. Several Slovak legal norms tackle the matters of financial and economic crime as well, having multinational dimension. For instance, the number of the fictitious commercial companies is steadily increasing that are involved in non-transparent business transactions, with the participation of white horses in the so-called carousel fraudulent schemes (tax evasions) with the aim of exercising an excise deduction of value added taxes. The research object of this paper are taxes and their management highlighting negative phenomena associated with the tax compliance. The paper focuses on studying tax avoidance and tax evasions evolution, highlighting the factors influencing occurrence of these phenomena from the historical perspective. Moreover, it studies who the typical fraudster is, since the auditors may identify the problems with tax avoidance and tax evasion because of knowing better the personality type who is liable of committing tax fraud as this may be considered as an risk element in performing audit. We may object and question the behaviour of some entrepreneurs as far as ethics is concerned, especially in connection with looking up tax paradises as the headquarter for a new established company due to low or zero tax rates. Speculative businessmen could be found everywhere. Moreover, the partial objective of this scientific paper is also to examine and analyse tax fraud as a part of economic crime globally.