Detecting tax evasion in the hospitality and tourism sector DOI Creative Commons

Andrei Dumitriu,

Veronica Grosu, Cristina Gabriela Cosmulese

et al.

Accounting and Financial Control, Journal Year: 2024, Volume and Issue: 5(1), P. 57 - 67

Published: Sept. 25, 2024

One of the industries with fastest development is hospitality and tourism (HoReCa) sector. However, there also a growing trend in this sector to evade some state taxes. Despite promises that digitalization will reduce tax evasion, practice nevertheless serious threat economy state. This study aims process comprehensive model for screening risk assessment fraud HoReCa Romania. In sense, an empirical was conducted using econometric detect evasion Romania, based on sample 50 firms each sub-sector (hotels, restaurants, cafes), analyzing period 2018–2022. The dependent variable indicator, calculated as difference between average financial ratios firm entire results show leverage ratio has strongest positive impact indicator. fixed asset turnover accounts receivable have significant impact, indicating false sales reports or collection irregularities. solvency immediate liquidity effects fraud, while net rate return only one negative effect, suggesting profitable entities are less prone evasion. proposed provides solid basis identifying high-risk companies directing authorities improve supervision industry. findings highlight importance further automating reporting systems risks

Language: Английский

Detecting tax evasion in the hospitality and tourism sector DOI Creative Commons

Andrei Dumitriu,

Veronica Grosu, Cristina Gabriela Cosmulese

et al.

Accounting and Financial Control, Journal Year: 2024, Volume and Issue: 5(1), P. 57 - 67

Published: Sept. 25, 2024

One of the industries with fastest development is hospitality and tourism (HoReCa) sector. However, there also a growing trend in this sector to evade some state taxes. Despite promises that digitalization will reduce tax evasion, practice nevertheless serious threat economy state. This study aims process comprehensive model for screening risk assessment fraud HoReCa Romania. In sense, an empirical was conducted using econometric detect evasion Romania, based on sample 50 firms each sub-sector (hotels, restaurants, cafes), analyzing period 2018–2022. The dependent variable indicator, calculated as difference between average financial ratios firm entire results show leverage ratio has strongest positive impact indicator. fixed asset turnover accounts receivable have significant impact, indicating false sales reports or collection irregularities. solvency immediate liquidity effects fraud, while net rate return only one negative effect, suggesting profitable entities are less prone evasion. proposed provides solid basis identifying high-risk companies directing authorities improve supervision industry. findings highlight importance further automating reporting systems risks

Language: Английский

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