Fighting with Tax Fraud-Best Practices and Steps for the Future

Abstract

"The purpose of this paper is to identify the best methods that can be implemented by a state, or a group of states for protection against tax fraud; the paper also suggests improved mechanisms at the European and international level in the fight against tax fraud. The research method is a survey in which independent professionals and civil servants with positions of responsibility in relevant institutions in the field of combating tax fraud have expressed their views on tax fraud and how to take action to reduce or prevent it. The study objectives are finding the most appropriate measures and detection techniques that could be more useful to the state for the necessary protection against tax fraud, finding the most effective methods that should be imposed by law to create an internal control system in the companies to reduce the phenomenon of tax fraud. The study reveals that the most important measure that a government can implement for fighting tax fraud is the cooperation between public organizations. Also, civil servants working in the fiscal/judicial field should be highly qualified and comply with clearly stated ethical standards. Ground and maritime surveillance for the detection of smuggling illegal excisable goods for the detection of illicit trafficking of sensitive goods by sea are extremely important. They are as important as detailed procedures for dealing with cases of suspected fraud and for guaranteeing the quick transmission of information to the competent authorities; another kind of desirable procedure is those that guarantee the protection of the whistle-blowers. Implementing management's responsibility for financial reporting, likewise to The Sarbanes-Oxley Act in the United States, is crucial for minimizing the level of tax fraud at the international level. Hopefully, working together within OECD/G20 Inclusive Framework on BEPS, 139 countries and jurisdictions are collaborating on the implementation of 15 measures to tackle tax avoidance at the international level, improve the coherence of international tax rules and ensure a more transparent tax environment. More than 130 states reached an agreement in July 2021 on reform of multinational taxation to impose a minimum global profit tax of ""at least 15%"" on them. Likewise, the European Union also has strong institutions and strategies against tax fraud."