The impact of tax changes on the shadow economy in the Croatian tourism sector
Author
Cevizovic, Ivana
Term
4. term
Education
Publication year
2020
Abstract
This thesis examines how changes in Croatia’s tax system over the past decade have affected the size of the shadow economy in the tourism sector. Recognizing tourism’s major role in the economy (19.6% of GDP in 2018), the study addresses the research question using qualitative interviews with workers and business owners who have participated in shadow economy activities, alongside an interview with a researcher from the Institute of Public Finance. These primary data are complemented by existing research and statistics to trace shifts in VAT, fiscalization, tax inspections, and personal and corporate income taxation. The analysis indicates that numerous and frequent tax system changes and tax burdens have pushed more private businesses toward shadow practices. It also finds a strong link between citizens’ tax morale and the extent of the shadow economy, and concludes that instability in tax rules undermines trust in the state and contributes to the shadow economy’s growth.
Dette speciale undersøger, hvordan ændringer i det kroatiske skattesystem over det seneste årti har påvirket omfanget af skyggeøkonomien i turismesektoren. Med udgangspunkt i turismens store betydning for økonomien (19,6 % af BNP i 2018) adresserer studiet forskningsspørgsmålet gennem kvalitative interviews med arbejdere og virksomhedsejere, der har deltaget i skyggeøkonomiske aktiviteter, samt et interview med en forsker fra Institut for Offentlige Finanser. Disse primære data suppleres af eksisterende forskning og statistik for at belyse ændringer i bl.a. moms, fiskalisering, skatteinspektioner samt person- og selskabsskat. Analysen indikerer, at talrige og hyppige ændringer i skattesystemet og skattebyrder har presset flere private virksomheder til at operere i skyggeøkonomien. Derudover fremstår en stærk sammenhæng mellem borgernes skattemoral og skyggeøkonomiens omfang, og ustabilitet i skattereglerne synes at undergrave tilliden til staten og bidrage til vækst i skyggeøkonomien.
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