TAX EVASION IN NATIONAL ECONOMY

The economic approach to the problem of tax evasion in national economies is based on the analysis of individual behavior of taxpayers, or the analysis of the manner in which tax rates and tax instruments affect the application of economic policy of taxpayers. It is the natural tendency of taxpayers to pay the smallest possible amount of the tax liability, by finding loopholes and insufficient accuracy of regulations. They also tend to apply the tax laws under the most favorable conditions. It is the aim of taxpayers to pay the tax in the amount that is smaller than its real value, or not to pay it at all. Payment of tax causes reduction in economic power of taxpayers and deterioration of their economic status. By avoiding tax payment tax payers illegally reduce their tax liability. However, these actions reduce public funds that are formed by collecting taxes. The object of this paper is to influence the consciousness of taxpayers and to point out that the process of tax evasion usually leads to a redistribution of the tax burden in society in relation to the burden which was predicted by the legislator, because of the fact that the person who is supposed to be a taxpayer avoids to pay taxes. Tax evasion is a serious social problem, it destroys economic sphere of society and causes disturbance in the economic system.