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Our objective is to investigate the determinants of tax avoidance in Romanian companies in 2013–2017. Our initial sample comprises 236 privately owned companies that are payers of profit tax and have been found guilty of tax evasion. This was matched with 236 ‘compliant’ companies structured similarly by industry, whereas the final sample comprises 1674-year-observations. We defined ‘compliant’ those companies that have never been prosecuted for tax evasion. Our main finding is that larger companies with lower financial performance and lower leverage ratio are more inclined towards tax avoidance. The geographical region and the industry sector in which companies operate in are also determining their tax avoidant-behaviour. Surprisingly, the fiscal regulations amended starting with 2016 did not lead to an apparent exacerbation of tax avoidance among profit tax payers.

In accordance with Article 31, section IV, of the Political Constitution of the United Mexican States, it is established that it is the obligation of Mexicans to contribute to public expenditures, whether of the Federation, of the Federal District or of the State and Municipality in which Reside, in the proportional and equitable manner provided by the laws. It should also be noted that this precept is based on the fact that this obligation considers compliance based on the principles of generality, equity, obligations and transparency in the destination of public spending. However, when citizens perceive that their contributions do not comply with what is established in the regulations in question, there is a so-called tax evasion. Which in accordance with Camargo (2005), that concept is defined as the reduction of an amount of a tax produced within a country by those who are obliged to pay it do not, however, they do obtain benefits through a behaviour fraudulent. Based on this premise, the purpose of this study is to estimate in the best possible way the potential collection that could be obtained by the Federal Government, particularly from the payment of income tax by people who carry out transactions in the informal market, focusing on analysis on the citizens that are dedicated to the sale of merchandise in the markets on wheels, considering simultaneously the benefits that these people would obtain when paying this tribute. For this, 300 surveys were carried out, considering the answers, as well as the application of the Real Options methodology Trigeorgis y cols. (1996) and the Game Theory model (Mas-Colell, Whinston, Green y cols., 1995), the estimation of the collection by expanding the tax base and the benefits in monetary terms at the moment these people enter the formal market.

The purpose of this handbook is to provide policy makers with a framework to assess a tax system in its entirety, measure its various parameters and how it is administered, and defines best practices for tax policy and administration that will yield a tax system that is simple and predictable and does not create an undue burden on private enterprise. This handbook is primarily designed for policy makers and tax practitioners. The goal is to analyze the impact of income tax, the value added tax (VAT), and other local taxes that are imposed on business. This handbook does not analyze the effects of trade and labor taxes such as social security. The administration of the customs duty is unique and has been addressed extensively in the literature on customs modernization. Labor taxes primarily imposed on salaried individuals are not covered by this handbook, even though their incidence affects business. VAT has been included even though it is a tax on consumption because the administrative burden to comply with it is primarily on business.