by Brojba, Laura Cornelia;
Dumitru, Corina Graziella and Belciug, Adrian Vintilescu
Published in Romanian Journal of Economic Forecasting, 2010, volume 13 issue 1, 151-164
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Although the provisions of the Fiscal Procedure Code create the image of some
norms with a somewhat "rigid" character, a series of options specific to modern finance behind the legal text require consideration of optimal strategies by the
institutions of tax administration.
Because of the contribution to the growth of the revenues to the consolidated budget, important especially during an economic crisis, we considered the analysis and modelling of several default options included in the Fiscal Procedure Code, both with respect to debt collection and to tax inspection.
Increased efficiency has been analyzed both in terms of the possibility of application of enforcement measures, but also of appropriate strategies to combat tax evasion by fiscal control and introducing a "flat" tax.
The modelling of decisions included, as instruments, the valuation of the assets in risky conditions, theory of games and ARMA econometric model.
The study concludes that in the early periods of economic crisis it is not the ease of tax administration (rescheduling, delays, exemptions) that leads to an effective policy but rather government policies that reduce the probability of bankruptcy among companies. Regarding the tax inspection, the model used leads to possibilities of profound analysis of the dimensions of the control activity and the design of a flat tax.
Financial modelling of several tax administration decisions resulted in a procedure by Order of the President of the National Agency for Tax Administration (ANAF) no. 1126/2008 and therefore the use of flexible models must consider, even in the budgetary sector, besides increasing profitability on earnings also the risk of insolvency.
tax administration, insolvency risk, option theory, theory of games, flat tax