Tax Law and its Impact on the State Budget

Abstract

The Author presents some refl ections regarding the current role of States and international entities and the role and functioning of law as such in the sphere of public finances and, especially, the fight against tax frauds. She emphasizes that a positive effect may be brought only by acting at the global level and that artificial or even irrational persisting on the State sovereignty or isolated attitude of the States regardless of the “common good of many” can cause the opposite to the desired effect. The State has already implemented a series of measures that should partially reduce tax evasion, but it should be noted that as legislators are looking for ways to prevent tax evasion, taxpayers also use all available means to avoid paying the taxes or minimizing their amount. Mutual cooperation among the countries not only within the EU but globally, should help to improve the situation in tax collection in the future.