A simple analysis of the tax gap Balkan region

Abstract

The main purpose of this study is the creation of a map of the division of the tax gap is to create an informative presentation and an overview of the phenomenon of tax policy. This analysis of the tax gap creates spaces for every interested party and to judge what brings consequences tax gap and what changes need to be made in the tax system a little bit to narrow this gap. One should note that any tax system throughout the world constantly facing the challenges of the tax gap as this is a negative phenomenon inherent in tax administration. A collaboration between policymakers and citizens would be the best solution and the most effective for reducing the tax gap. Creating a special mission in tax administration will serve as a model of good governance. Anyone who wants to contribute to maintaining the same level of tax gap or even worse attempt to increase his will help increase the tax burden on the taxpayers expenses honest. In this paper will be analyzed countries of the Balkan region. Discussion on the tax gap helps to focus attention on the events and lives of fiscal management that is a match with the culture face to face fiscal evasion and tax avoidance. This discussion should provide a light on the dilemma of tax administration, where efforts to promote voluntary compliance in the calculation and payment of taxes need to oppose strong measures to disarm those that do not apply the same principles of voluntary compliance. Tax gap can be assessed through two main models. The first model deals with microeconomic indicators approach or different model down – up. The second model which will apply and in this study has to do with the alignment of various macroeconomic indicators from top – down. Adapting the second model we can measure and evaluate the VAT gap and excise tax gap. But this approach has its limitations, because it gives no explanation as to how the gap is present in different parts of the area measured. Another difficulty has to do with the fact the complexity of the tax system. In this case, it is difficult to measure the tax effects of activities that are not subject to the tax, or for activities that are part of the global exemption from VAT. Being careful in preparing data for tax gap map this study is based on data from the World Bank, HM Revenue, customs of each country included in the study, USAID and OECD.