Tax Evasion within European Union - Trends and Determinants

This study approaches the theme of shadow economy with special attention on tax evasion within European Union. Our aim is to highlight the dynamics of tax evasion, its causes and effects. The possibilities and mostly the difficulties to quantify the tax evasion are emphasized. Tax burden is analyzed as potential determinant of tax evasion, within the theoretical framework of Laffer curve. Important contributions in methodological terms are provided, as our method allows to identify threshold levels of tax burden which foster tax evasion. Our results display some heterogeneity within the sample observed. This is an exploratory study that open new and significant research perspectives