COMBATING ILLEGAL INTERNATIONAL TRADE AND PROTECTING TAX REVENUE IN THE EU

Santrauka

Illegal international trade poses a serious problem to the EU, as it compromises on the collection of tax revenue, disrupting market competition, and compromising the integrity of the single market. This paper is an analysis of the illegal international trade within the (EU) with special attention to the effect of tax revenue protection it has. The study is based on the scientific literature analysis of the EU and synthesis and analysis of policy reports, and comparative analysis. According to the findings, the VAT fraud, smuggling of excisable goods, counterfeit products, customs fraud, and trade-based money laundering result in large fiscal losses, in particular, the VAT gap and the evasion of the excise taxes. This paper has made the conclusion that strong defense of EU tax revenues must be founded on a multipronged approach that comprises of reinforced enforcement, computerization of tax and customs regimes, bolstered cooperation at the frontiers, focused fiscal structure, and demand side actions to minimize the incentives on illegal trade.