"MAGIC" FORMULA OF THE JOINT AUDITS IN RAISING REVENUE THROUGH WEEDING OUT CORRUPT PRACTICES (BASED ON ROMANIA AND MOLDOVA CASES)

Around one trillion Euros is lost to tax evasion and avoidance every year in the EU. In this context, governments have increasingly been tempted to turn to cross-border audits to secure needed resources and expertise to assist in ensuring international compliance with various taxes and other sources of revenue. However to manage international tax compliance revenue authorities are faced with the significant problem of corruption. The aim of this paper is to examine whether joint audits have to be applied in order to increase the efficiency of revenue collection. In order to narrow the field of investigation, the article focuses primarily on the situation faced by the Romania and Moldova.