The Tax Evasion Models Under Stimulation And Penalty Conditions

Purpose of article – classification of economic and institutional components of the tax capacity and determination of current and projected estimates of government efforts. Design/methodology – estimation of the total tax capacity based on active indicators, evaluation of efforts of institutions fiscal policy on the basis of a representative the tax system with the help of modeling tax evasion. Findings – determination of primary tax evasion sectors based on economic (cash transactions, tax revenues, tax credits and exemptions, hidden economy, and so on.) and institutional (legal, administrative, financial etc.) factors, as well as evaluation of their current and expected results. Research limitations – lack of information, potential lost due to illegal activities lawfully and unlawfully established subjects. Practical implications – analysis of the impact of the existing rules on the formation of the tax potential and its taxable portion in the form of tax revenues. Originality/value – estimation of the total tax capacity and proposal of a methodological approach to estimate the impact of change in GDP, as well as legislative and administrative efforts on tax capacity.