Scholarly record
MECHANISMS OF FISCAL FRAUD IN INTRA-COMMUNITY OPERATIONS
Abstract
The present paper tries to identify the key stages of the intra-Community fiscal fraud that occur in operations with goods performed between economic agents from EU member states. Depending on the type of operations-that may be intra-Community acquisition or delivery-there were analyzed the fiscal fraud mechanisms aiming at evading taxes and fees associated with reducing or hiding taxable basis. As a research method there was used the theoretical approach and empirical research. In the theoretical approach there were analyzed the intra-Community acquisitions and deliveries of goods, as required by law. The empirical research was based on practical cases of intra-Community tax fraud investigated by the author as Commissioner of the Financial Guard in Romania. The losses of taxes resulting from fiscal fraud in intra-Community transactions differ from one Member State to another depending on the number, the degree of implication and interests of the participants to fiscal fraud mechanism. The main obligation subjected to tax fraud in the case of these operations is the value added tax taking into account that the purchases and deliveries of goods are transported between Member States without VAT. The theme is obsolete in the light of the fact that according to the data available in the specialty literature the annual fiscal fraud to the value added tax shall is situated around 200 billion euros at Community level and 11 billion euros in the case of Romania. To find effective solutions to combat fiscal fraud in intra-Community transactions has as a main effect the absorbtion of further resources at both the budget of the E.U. intra-Community as well as to the budget of each Member State.
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References6
Center for Social and Economic Research, Study to quantify and analyse the VAT Gap in the EU-27 Member States Final Report, Poland, 2013, pp 10-29
Fiscal Council from Romania, Report 2012, Romania, 2013, pp 93-97
European Union Council, Directives 112/2006, regarding the common system of VAT, Official Journal of the European Union nr.L 347/11.12.2006, article 20
****, Law 571/2003, regarding the Fiscal Code with further modifications and completions, Official Monitor of Romania nr. 927/2003, article 128 al.(1) and al.(9)
European Union Council, Regulation (UE) nr. 904/2010 of the Council from October 7th, 2010 regarding the administrative cooperation and fraud combat in the field of VAT, Official Journal of the European Union nr.L 268/12.10.2010, article 21
European Union Council, Directives 2013/42/UE of the Council 22.07.2013, to modify the Directives 2006/112/CE regarding the common system of VAT in case of a fast movement mechanism against fiscal fraud for VAT, Official Jouranl of the European Union nr.L 201/2013
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