NEZAKONITO IZBJEGAVANJE POREZA NA DOHODAK I OSVRT NA STANJE U RH / ILLEGAL TAX EVASION OF INCOME TAX AND REVIEW THE CASE OF THE REPUBLIC CROATIA

Abstract

Income tax evasion is a common social phenomenon by which taxpayers from various motives, in a legitimate or illegal way, try to avoid paying it. The paper wants to explain the problem, the complexity and the reasons for the illegal evasion of income tax, with special attention to the situation in the Republic of Croatia because mass income tax evasion is a long-term threat to every country. Author wants to clarify how and why income tax is avoided in the Republic of Croatia and what Croatian tax authorities can do to make this phenomenon suppress or at least to put it into more acceptable terms. The reasons for tax evasion in the Republic of Croatia have been found in a kind of synergy due to the inability of the tax authorities to disclose the unpaid and the tax oppression for which the taxpayers are seeking their "escape" in tax evasion. Paper first defines the illegal tax evasion, then explains the relationship between tax evasion with an unofficial economy, then it presents the current models of avoidance of income tax in the Republic of Croatia with legal sanctioning of the perpetrators and in the last chapter it gives conclusion or the widespread culture of income tax evasion.