THE COMPARATIVE ANALYSIS OF ROMANIAN AND FRENCH TAX SYSTEMS

The traditional and fundamental method for states to make revenues is collection of taxes and many countries still have challenges which make them struggle to implement the collection of taxes and fees. Political factors and administrative restrictions should be considered as examples for these challenges. The purpose of research is evaluation of selected European tax systems by statistical data such as tax revenues and unemployment rate due to find out which system is more effective and efficient in tax collection and define insufficiencies and the possible solutions that can increase tax burden and establish desired tax administrations. The performance of tax systems depends on several factors such as the reforms in taxation, structure and development of economy, social and political growth, extent of tax base. Tax revenue is one of important source for government revenue which directly affect the economy of state. The governments have to create the less complicated tax systems which can cause to make competitive location for launching new business and attraction of investments. Because more complicated systems increases the probability of tax evasions, tax avoidance and corruption which lead to lessen the interests for new investments. Modern states need an effective, efficient and optimal management for achieving maximum level in tax compliance because increase of tax revenues can affect and rise in a huge manner the strengthening and establishment of the legitimacy of country. Building the effective system takes time and problems in tax collections, tax avoidance and frauds cause the taxation as a topic to be actual in each decade. The research has both empirical and theoretical sections and the empirical part contains mostly the quantitative analysis.