EIRP Proceedings, Vol 9 (2014)

Abstract

State budget is considered to be the instrument of achieving social and economic objectives, with the ability to mediate its subsidies and tax incentives. Lack of funds, which are part of budget income, leads to incapacity of achieving the state   duties, and this is the result of taxpayers avoiding to pay taxes. The need for delimitation between unlawful and lawful tax avoidance makes it useful to estimate the size of the phenomenon on its two forms of expression and raise awareness among political and administrative decision makers, in order to search and determine appropriate methods to limit and combat the phenomenon.