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Vol.3 , No. 1, Publication Date: Feb. 12, 2018, Page: 8-27
 over the period of 12 years, ranging from 2003 to 2014. The methodology of this study utilizes shadow economy as a proxy for Tax Evasion and builds upon existing research in the field. This particular study focuses on addressing past trends in Tax Evasion by analyzing trend patterns in tax revenue losses. The data generated through model calculations exhibited an overall positive trend in Tax Evasion losses in the EU. Further hypothesis testing exposed specific EU countries with evasive tax payers that are sensitive or insensitive to EU membership, size of national tax rates and state of their country’s economy. The empirical findings obtained in this research have reaffirmed the European Commission’s distress regarding the negative effect of Tax Evasion on the EU economy and laid out a comprehensive quantitative groundwork for tax policy makers to make informed decisions in the future with the goal of reducing Tax Evasion losses in the EU and beyond.&picture=http://www.aascit.org/aascit/decorators/img/journal/926.jpg)
| [1] | Aušrinė Stankevičiūtė, International Business Administration Department, LCC International University, Klaipeda, Lithuania. |
This empirical research stems from the European Commission’s call to action to fight against tax fraud and Tax Evasion in the European Union. It aims to quantify and evaluate the overall monetary damage that Tax Evasion entails on the EU tax revenue streams. The sample size examined in the research process is comprised of the 28 current EU member states (in 2016) over the period of 12 years, ranging from 2003 to 2014. The methodology of this study utilizes shadow economy as a proxy for Tax Evasion and builds upon existing research in the field. This particular study focuses on addressing past trends in Tax Evasion by analyzing trend patterns in tax revenue losses. The data generated through model calculations exhibited an overall positive trend in Tax Evasion losses in the EU. Further hypothesis testing exposed specific EU countries with evasive tax payers that are sensitive or insensitive to EU membership, size of national tax rates and state of their country’s economy. The empirical findings obtained in this research have reaffirmed the European Commission’s distress regarding the negative effect of Tax Evasion on the EU economy and laid out a comprehensive quantitative groundwork for tax policy makers to make informed decisions in the future with the goal of reducing Tax Evasion losses in the EU and beyond.
Keywords
European Union, Financial Crime, Tax Fraud, Tax Evasion, Tax Revenue, Shadow Economy
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