Faculty of Business and Econimics

Tax evasion is affected by many diverse subjective and objective factors. They are intertwined and determined as well as mutually connected and complementary. This paper is aimed at and orientated towards identifying the factors, both subjective and objective, that affect tax evasion in Bosnia and Herzegovina. The main research result indicates that tax evasion has multiplicative effects. It destroys the reputation of institutions primarily and, in particular, the reputation of the tax administration, it poses a threat to the tax system and rule of law, causing taxpayers distrust of the tax system itself. Thus, by reducing tax evasion the situation in public finances improves substantially. The paper shows the theoretical analysis of the phenomenon of tax evasion (which is not a goal in itself), including the empirical analysis of the subjective and objective factors that have the greatest influence on tax evasion in Bosnia and Herzegovina and the assessment of the amount of taxes evaded. 1 Herzegovina for a doctoral thesis " Model for determination of subjective and objective tax evasion factors " by intrant Saudin Terzic, under the mentorship of full-time professor PhD Aleksandar Stojanović. Model for determining subjective and objective factors of tax evasion 1 Model determinacije subjektivnih i objektivnih faktora porezne evazije Sažetak Na poreznu evaziju utječu svojom isprepletenošću i determiniranošću brojni subjektivni i objektivni čim-benici, a svi čimbenici porezne evazije su uzajamno povezani i nadopunjujući. Cilj i svrha ovog rada je identifikacija subjektivnih i objektivnih čimbenika, koji utječu na poreznu evaziju u Bosni i Hercegovini. Osnovni rezultat istraživanja ukazuje da porezna evazija ima multiplikativno djelovanje, narušava ugled, prije svega institucija, posebno porezne administracije, ugrožava porezni sustav i načela pravne države, uzrokujući nepovjerenje, prije svega poreznih obveznika u sam porezni sustav te se smanjenjem porezne evazije, značajno poboljšava stanje u javnim financijama. U radu je prikazana teorijska analiza fenomena porezne evazije (koja nije sama sebi cilj), s empirijskom analizom subjektivnih i objektivnih čimbenika koji najviše utječu na poreznu evaziju u Bosni i Hercegovini, s procjenom visine porezne evazije. Ključne riječi: porez, porezna evazija, porezni sustav, porezna administracija, porezno opterećenje i porezna stopa, korupcija

Funkcioniranjem međusobno neuvezanih poreskih uprava sa postojanjem brojnih poreskih propisa otvara se prostor za utaju poreza i poresku evaziju, sa posljedicama na fiskalnu disciplinu što pogoduje stvaranju mnoštva problema ekonomskog, pravnog pa i sociološkog karaktera. Funkcionisanje poreskog sistema i oporezivanja jedne ekonomije su od krucijalnog značaja za ukupnu finansijsku stabilnost, a poreska evazija je jedan od značajnijih rizika, ukoliko se ne riješava na adekvatan način i ona zbog svoje visine može da prouzrokuje ozbiljnu finansijsku nestabilnost jedne zemlje. Nijedan poreski sistem nije imun na zloupotrebe, kao ni sam sistem PDV, samo su različite metode prevara u različitim poreskim sistemima. U radu je prikazan teoretski dio problematike poreza i osnovna obilježja sistema oporezivanja u BiH. Cilj ovog rada je da ukaže na kompleksnost poreskih sistema u Bosni i Hercegovini.
The functioning of tax administrations that have no mutual connections and the existence of a great number of tax regulations open room for tax evasion and tax avoidance, have a bearing on fiscal discipline, and in turn serve to create a multitude of economic, legal and even sociological problems. The functioning of the tax system and taxation in one economy is of crucial importance to overall financial stability, and tax evasion is one of the major risks, if not addressed adequately, and, depending on the amount of taxes evaded, can trigger severe financial instability in a country. Neither one taxation system is invulnerable to misuse, thus the VAT system is not immune as well, only methods of frauds that are different in various taxation systems. The paper presents the theoretical part of the tax problems, the basic characteristics of the taxation system in BiH.The aim of this paper is to point out the complexity of tax systems in Bosnia and Herzegovina.

Global economic crisis and its consequences especially on the countries in transition has contributed to the trend of decreasing of economic activities, decreasing of employment and increasing the level of tax burden which is especially expresed in conditions of not favorably business environment. Tax evasion has been present in theory for many years, but in our practice until now it has not been significantly consideres and this is one of the research goals to answer what woud happen to total business and economic environment if we decided for radical fight against tax fraud with the goal of increasing public revenues on one side, and relief of economy and increasing of competitiveness both in the domestic and foreign markets, on the other side. Decreasing of tax frauds, before all, would positivly affect on the public sector in long-term perion because it would lead to growth and greater stability of public revenues (grater revenues of VAT as the most important tax form), would create conditions for new investment activity, which affected the growth of companies, and thus the overall growth of the economy.

The functioning of the tax system and taxation in one economy is of crucial importance to overall financial stability, and tax evasion is one of the major risks, if not addressed adequately, and, depending on the amount of taxes evaded, can trigger severe financial instability in a country. Taxes are one of the essential factors of economic growth and development, they are subject to constant change and improvement, and every tax form, be it a direct or indirect tax, contributes to generating tax revenue to a smaller or greater extent., tax system and organization, taxpayer audit, fines and sanctions, tax burden and tax rate, tax moral and corruption and attitude of tax payers .INTRODUCTION There are numerous factors that affect and encourage tax evasion, there is also interaction between individual factors and these can present a structural problem of one country. Factors of tax evasion are mutually connected and complementary in all countries as countries and societies are significantly different from the point of view of economic system and level of development, different legislative and tax framework, or historical development. Most countries are trying to influence on factors, but as this can have significant consequences, such a decision should not be taken without conducting a careful research. The first major comprehensive review on tax payers' behavior concerning the tax evasion in literature was given by (Jackson and Milliron, 1986, p. 3, in general) and they have established 14 the most important determinants of tax evasion. Those determinants include: age, gender, education and occupation, status (demographic determinants) income level, source of income, marginal tax rate, sanctions, penalties and possibility of being caught (economic determinants) and the complexity and fairness of tax system, tax administration activity, ethics and tax morale (behavioral determinants). When these determinants are clearly and systematically identified through empirical analysis, certain answers can be drawn, enabling the economic policy makers to formulate an economic strategy for minimizing harmful effects of tax evasion (Richardson, 2006, p.151). 1his work is based on the research conducted by Saudin Terzic with the purpose of doing a doctoral dissertation " Model for determination of subjective and objective tax evasion factors "

Izbjegavanje plaćanja poreza je složeno pitanje, koja nadilaze nacionalne granice, mogućnosti za poresku evaziju su brojne i neiscrpne i štetne posljedice mogu dovesti do implikacija koje se reflektiraju između ostalog i na održiv razvoj. Cilj ovog rada je analiza faktora poreske evazije i ukazivanje na značaj poreske evazije i njen uticaj na održiv razvoj. Prikupljanje poreza kao najznačajnijeg javnog prihoda je veoma značajno radi funkcionisanja i održivog razvoja a sa tim procesom dolazi kao nerazdvojna pojava i poreska evazija. Generalno posmatrano, održivi razvoj podrazumjeva ravnotežu između potrošnje raspoloživih resursa i sposobnosti društva da zadovolje potrebe sadašnjih i budućih generacija [1]. Savremeni razvoj društva i načini privređivanja karakterišu brojne, velike i turbulentne promjene, sve veća liberalizacija, globalizacija i internacionalizacija poslovnih aktivnosti, visoka tehnologija, inovativnost i dinamičnost. Turbulentne promjene u ekonomiji, izrazito velika i zaoštrena konkurencija, veliki promet dobara i usluga, rast i zaoštren razvoja regulatornih normi daju posebne dimenzije, te u tom domenu pitanje poreske evazije i održivog razvoja postaje veoma važno i utiče da se sama pojava poreske evazije mora posmatrati na način koji zahtijeva razumijevanje prirode te pojave. Rad smo struktuirali na sljedeći način. U prvom djelu rada objasnićemo i analizirat će se poreska evazija kao faktor održivog razvoja. Drugi dio rada posvećen je istraživanju i identifikovanu ključnih faktora koji utiču na poresku evaziju kao faktor održivog razvoja.

Doktor ekonomskih nauka, Uprava za indirektno oporezivanje, [email protected] Lektor, Univerzitet u Beču, Austrija, [email protected] Apstrakt: U posljednje vrijeme zbog značaja i aktuelnosti kako u parksi tako i u teoriji sve se više analizira. organizacija poreske administracije u funkciji smanjenja poreske evazije. Moderne poreske administracije su primarno agencije za prikupljanje prihoda, egzistiraju i rade na principima međusobne usklađenosti, idu u korak sa najnovijim trendovima u oporezivanju s ciljem maksimiziranja vrijednosti za ukupnu ekonomiju. Poreska evazija je ozbiljan problem u savremenom svijetu koja je u različitim oblicima i razmjerama prisutna svugdje, pa i u ekonomski snažnim i organizovanim državama. Poreska administracija predstavlja važnu determinantu unutar svakog ekonomskog sistema i ona ne može biti operativna ako je izolovana od ostalih institucija. Nijedna poreska admini-stracija nije imuna na poresku evaziju, samo su različite metode poreske evazije. Profesional-na, odgovorna, dostupna, djelotvorna, uslužna i efi kasna poreska administracija koja služi u najboljem interesu poreskih obveznika i organizacija orijentisana prema efektima treba biti apsolutni prioritet u radu jednog poreskog organa. Cilj ovog rada je analiza zadovoljstva stavova ispitanika sa pojavama koje su u vezi sa poreskom evazijom. Ključne riječi: porez, poreska administracija, poreska evazija. JEL klasifi kacija: H20, H26, H32. UVOD Moderne poreske administracije su primarno agencije za prikupljanje prihoda, eg-zistiraju i rade na principima međusobne usklađenosti, idu u korak sa najnovijim trendovima u oporezivanju s ciljem maksimiziranja vrijednosti za ukupnu ekono-miju. Prikupljanje poreza kao najzančajnijeg javnog prihoda je veoma značajni radi funkcionisanja i održivog razvoja a sa tim procesom dolazi kao nerazdvojna pojava i poreska evazija (Terzić, Berger, Kljajić, 2018). Sve poreske administracije teže da

The processes of globalization and internationalization have been a benefit to developing countries in terms of increasing economic development. The lack of an appropriate economic framework can have a number of detrimental consequences for one country at a time. Bosnia and Herzegovina's orientation towards market economy and inclusion in modern economic flows requires certain reforms in order to accelerate economic integration. Can the state of Bosnia and Herzegovina, by reviving the "mini Schengen", gain comparative advantages and economic advantages by joining this integration? The aim of this paper is to research and determine the status of certain indicators and benchmarks of the Western Balkan countries through the use of the World Bank database, which can be a challenge to establish a better business environment business that facilitates regional economic integration.

Bosnia and Herzegovina (BiH) is still at an early stage in development of functional economic and social environment. “How do tax evasion and tax policy effect on economic and social environment?” This is one of the key issues that requires full attention of fiscal policy and is also the hypothesis of this study. Is tax evasion in direct correlation with the economic welfare of a society, social environment and economic activity? The effort to shed light on these questions can help in the implementation of measures and activities on the prevention and suppression of tax evasion.In the focus of interests of this study are two groups of respondents, the taxpayers on one side who make contacts with professional groups on the other side employed in tax administrations (inspectors). For the purpose of analysing the collected data, the statistical package of SPSS was used. The contribution of this research and the main research result indicate that tax evasion has multiplicative effects, ...

Tax evasion is more of a disciplinary problem, produced by numerous, big and turbulent changes. The growing problems with tax evasion are present all over the world and they require a global solution of the problem. Although tax evasion is a global phenomenon, this is also the issue that most developed countries in the world are dealing with, there are significant differences between individual countries, all depending on the legal order, the entire social system and it is depending from country to country, and this is especially evident among transitioning countries. The problem of tax evasion is particularly acute in Bosnia and Herzegovina (hereinafter BiH). The main research result indicates that tax evasion has multiplicative effects; by reducing tax evasion, the situation in public finances improves substantially. This article discusses tax evasion in BiH and the perception of taxpayers and tax inspectors towards tax evasion. In this line, this article presents the theoretical analysis of the phenomenon of tax evasion (which is not a goal in itself), including the empirical analysis factors that have the greatest influence on tax evasion by using logistic regression modeling method. The paper checks the main hypothesis by identifying the factors that affect tax evasion and by determining their significance and impact, it is possible to construct logit model for determining factors of tax evasion in BiH.

Taxation is the single most important source of revenue in many countries. The importance of tax revenue relative to total government revenue will, vary from one country to the other. The purpose of this paper is to investigate the importance of estimating and measuring the amount of the tax gap with special reference to VAT. Due to the overall importance of taxes for the state, there is a need to review and measure the size of the tax gap. The issue of quantifying the tax gap is important in order to gain insight into the state of tax discipline and possible risks. Estimates of the amount of the tax gap should provide information on the amount of tax collection that can be expected when all taxpayers pay their taxes. There is no universal model for measuring the tax gap, because it is clear that there is a part of the tax that cannot be recorded and collected. Regardless of the fact that there is no universal model of measurement, one must try to find out how to measure tax gap. The conducted research deepens the knowledge about the problem of assessment and the way of measuring the tax gap of value added tax. According to the result of this paper, it can be concluded that it approves the results and opens space for some other research issues of measuring the value added tax gap.

Tax evasion is affected by many diverse subjective and objective factors. They are intertwined and determined as well as mutually connected and complementary. This paper is aimed at and orientated towards identifying the factors, both subjective and objective, that affect tax evasion in Bosnia and Herzegovina. The main research result indicates that tax evasion has multiplicative effects. It destroys the reputation of institutions primarily and, in particular, the reputation of the tax administration, it poses a threat to the tax system and rule of law, causing taxpayers distrust of the tax system itself. Thus, by reducing tax evasion the situation in public finances improves substantially. The paper shows the theoretical analysis of the phenomenon of tax evasion (which is not a goal in itself), including the empirical analysis of the subjective and objective factors that have the greatest influence on tax evasion in Bosnia and Herzegovina and the assessment of the amount of taxes e...

The functioning of the tax system and taxation in one economy is of crucial importance to overall financial stability, and tax evasion is one of the major risks, if not addressed adequately, and, depending on the amount of taxes evaded, can trigger severe financial instability in a country. Today, many countries are faced with the problem of tax evasion and reports of tax evasion multiply by the day. No tax system is immune to tax evasion, the only difference is the methods of tax evasion in different tax systems. Many and diverse factors, both subjective and objective, affect tax evasion as they are intertwined and determined and mutually connected and complementary. Tax evasion has multiplicative effects, it destroys the reputation of institutions primarily and in particular the reputation of the tax administration, it poses a threat to the tax system and rule of law, causing taxpayers’ distrust of the tax system itself. Thus, by reducing tax evasion the situation in public financ...

Lately, due to importance and actuality of both practice and theory organization tax administration in the function reduction tax evasion. Modern tax administrations are primarily revenue-raising agencies, exist and work on the principles of mutual compliance, keeping up with the latest taxation trends to maximize value for the overall economy. Tax evasion is a serious problem in the modern world that is present in various forms and proportions everywhere, even in economically strong and organized countries. Tax administration is an important determinant within every economic system and it cannot be operational if it is isolated from other institutions. No tax administration is immune to tax evasion, just different methods of tax evasion. A professional, accountable, accessible, effective, serviceable and efficient tax administration serving the best interests of taxpayers and impact-oriented organizations should be an absolute priority in the work of a single tax authority. The aim...

Global economic crisis and its consequences especially on the countries in transition has contributed to the trend of decreasing of economic activities, decreasing of employment and increasing the level of tax burden which is especially expresed in conditions of not favorably business environment. Tax evasion has been present in theory for many years, but in our practice until now it has not been significantly consideres and this is one of the research goals to answer what woud happen to total business and economic environment if we decided for radical fight against tax fraud with the goal of increasing public revenues on one side, and relief of economy and increasing of competitiveness both in the domestic and foreign markets, on the other side. Decreasing of tax frauds, before all, would positivly affect on the public sector in long-term perion because it would lead to growth and greater stability of public revenues (grater revenues of VAT as the most important tax form), would create conditions for new investment activity, which affected the growth of companies, and thus the overall growth of the economy.

Analysis and measurement of tax evasion is a very important issue primarily for the tax administration. The purpose of this article is first to show how to analyze tax evasion via a questionnaire. In Bosnia and Herzegovina, as well as in the EU countries and adder countries in the region and the world, ensuring fighting tax evasion has never been important than it is today. Tax evasion can’t observe in isolation from the rest of society. Maximising the revenue collected by promoting fighting tax evasion is the main responsibility of a tax administration. According to current knowledge, it is not possible to precisely quantify the range of individual factors on the very occurrence of tax evasion and the analysis and measurement of tax evasion factors does not have an easy path and is not an easy task. There are numerous studies on the influence of certain factors of tax evasion. This study highlighted the importance of factors that determine tax evasion. The objectives of this articl...

Apstrakt: U posljednje vrijeme zbog značaja i aktuelnosti kako u parksi tako i u teoriji sve se više analizira. organizacija poreske administracije u funkciji smanjenja poreske evazije. Moderne poreske administracije su primarno agencije za prikupljanje prihoda, egzistiraju i rade na principima međusobne usklađenosti, idu u korak sa najnovijim trendovima u oporezivanju s ciljem maksimiziranja vrijednosti za ukupnu ekonomiju. Poreska evazija je ozbiljan problem u savremenom svijetu koja je u različitim oblicima i razmjerama prisutna svugdje, pa i u ekonomski snažnim i organizovanim državama. Poreska administracija predstavlja važnu determinantu unutar svakog ekonomskog sistema i ona ne može biti operativna ako je izolovana od ostalih institucija. Nijedna poreska administracija nije imuna na poresku evaziju, samo su različite metode poreske evazije. Profesionalna, odgovorna, dostupna, djelotvorna, uslužna i efi kasna poreska administracija koja služi u najboljem interesu poreskih obveznika i organizacija orijentisana prema efektima treba biti apsolutni prioritet u radu jednog poreskog organa. Cilj ovog rada je analiza zadovoljstva stavova ispitanika sa pojavama koje su u vezi sa poreskom evazijom.

Tax evasion is affected by many diverse subjective and objective factors. They are intertwined and determined as well as mutually connected and complementary. This paper is aimed at and orientated towards identifying the factors, both subjective and objective, that affect tax evasion in Bosnia and Herzegovina. The main research result indicates that tax evasion has multiplicative effects. It destroys the reputation of institutions primarily and, in particular, the reputation of the tax administration, it poses a threat to the tax system and rule of law, causing taxpayers distrust of the tax system itself. Thus, by reducing tax evasion the situation in public finances improves substantially. The paper shows the theoretical analysis of the phenomenon of tax evasion (which is not a goal in itself), including the empirical analysis of the subjective and objective factors that have the greatest influence on tax evasion in Bosnia and Herzegovina and the assessment of the amount of taxes evaded.