IDEAS home Printed from https://ideas.repec.org/a/ora/journl/v1y2011i2p347-353.html
   My bibliography  Save this article

The Value Added Tax And The Evasion Chain Of Intra-Communitarian Vat

Author

Listed:
  • Deliman Eugen

    () (West University of Timisoara, Economics and Business Administration)

  • Herbei Marius

    () (West University of Timisoara, Economics and Business Administration)

  • Bene Gheorghe Florin

    () (West University of Timisoara, Economics and Business Administration)

  • Dumiter Florin Cornel

    () (Vasile Goldis University of Arad, Economic Sciences)

Abstract

The relationship IRS - taxpayer runs the risk of turning into a psychological war in which, however, given the positions held, the IRS is by far on a favorable footing. Between the apparently excessively formal position held by the IRS, which seems to conceal behind the laws, and the sometimes forced interpretation of the laws, by the taxpayer, there are the courts of law, also disturbed by the legislative changes which appear to have entered a perpetual motion. The objective of the fiscal administration regarding the value added tax is to combat tax evasion and fraud. It is very important to combat evasion in the VAT field because it represents the indirect tax of the largest share in the consolidated general budget. VAT evasion represents the intention of not paying the tax, withholding or not declaring it, or requesting its refund which would not be fit, due to the exaggeration of the deductible amount of the VAT. The essential aim of the IRS inspector is to verify the correctness of the declared amount of the value added tax. It should also be observed whether the incorrectness is deliberate or whether it was due to misunderstanding, carelessness or the ignorance of the payer. In all cases judgment is necessary, as for the cases of negligence the amount to be paid must be corrected and accompanied by applying fines and / or penalties, and in the cases of intended fraud legal actions are to be applied in order to obtain a conviction. Deceitful deductions represent other methods for tax evasion and are undertaken based on fake invoices, invoices often used several times for deduction, or invoices related to purchases that have never been made. Thus there are examples of economic agents who have practiced the right to deduct the VAT due to the acquisition of goods which consisted in the property of other economic agents. In other cases noticed was the deduction of VAT on goods or services that were not included in the activities of the economic agent who purchased them. Registration errors seem innocent, but they occur frequently and have a high value; for example, some economic agents do not calculate the Value Added Tax at the receipt of advanced payments from customers but when the goods are delivered.

Suggested Citation

  • Deliman Eugen & Herbei Marius & Bene Gheorghe Florin & Dumiter Florin Cornel, 2011. "The Value Added Tax And The Evasion Chain Of Intra-Communitarian Vat," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 347-353, December.
  • Handle: RePEc:ora:journl:v:1:y:2011:i:2:p:347-353
    as

    Download full text from publisher

    File URL: http://anale.steconomiceuoradea.ro/volume/2011/n2/046.pdf
    Download Restriction: no

    More about this item

    Keywords

    Value added tax; intra-communitarian acquisitions; IRS inspector; deduction; taxpayer;

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ora:journl:v:1:y:2011:i:2:p:347-353. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catalin ZMOLE). General contact details of provider: http://edirc.repec.org/data/feoraro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.