Analysis of the causes and consequences of tax evasion by legal entities: theory and practice

The aim of the research: theoretical analysis of the causes and consequences of tax evasion by legal entities and their systematization, accounting for which will prevent negative impact on the economy and all spheres of life. The hypothesis is put forward that tax evasion by legal entities affects not only business (reducing tax payments) and the budget (reducing tax revenues), but also all spheres of life and sustainable development of the country and regions. The study covers theoretical ideas about the essence, causes and consequences of tax evasion in classical economic theory, institutional theory of opportunism (in the traditional sense) and induced opportunism, theory of welfare economics (from the standpoint of utilitarian function and Rawlsian function of public welfare), theory of evolutionary taxation, neoclassical theory (using general and partial equilibrium models), theory of Marxism. A grouping of causes of tax evasion by legal entities is presented. The subgroup of objective reasons includes: deterioration of the financial position of the organization; low level of income of employees and the population as consumers of goods and services offered by the business; different taxation systems with different tax burden; lobbying the interests of certain groups of taxpayers - legal entities; the impact of the shadow sector on the activities of legal entities. Subjective: reasons of ideological nature (moral, political, economic, technical); of material nature (selfish motivation of business, pursuit of selfish goals of owners and managers of the legal entity, satisfaction of their personal needs). The grouping of methods of tax evasion by legal entities reflects the following blocks: manipulation of tax elements, use of industry specifics and different levels of complexity of schemes, transfer of tax liabilities to unscrupulous intermediaries. The negative consequences of tax evasion schemes of legal entities are established. It is advisable to introduce new methods and tools to counteract tax evasion by legal entities.

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