Journal of Knowledge Management, Economics and Information Technology

The present paper is studying the evolution of Romania’s foreign debt before and post accession in the European Union, namely the period 2000 – 2013, in the large context of the specific macroeconomic policy objectives of the times. According to our research results, the economic effect of external debt may be considered positive and for long-term, as a greater proportion of funds were used to finance investment projects, especially by private sector, and only a small part of this debt was oriented to cover public budget deficits.

  Romanian External Debt Evolution -Pre and Post Accession to Eu (587.0 KiB, 1,669 hits)

The lack of a propitious economic environment made the number of companies in Romania that became insolvent to progressively grow from one year to another, even though average sales registered in the year of starting the procedure were larger than the ones in previous years.
The performed study presents on one side the evolution of companies in insolvency in Romania in the crisis period and on another side determining factors of their activity’s continuity. The companies surviving the crisis are the ones that managed to reinvent themselves and identify new sales niches for their products and services, but one of the greatest disadvantages of these companies in insolvency remains the negative image outlined around them.
The insolvency procedure represents only one confirming instrument of a factual situation, respectively the one of Romanian companies’ powerlessness in paying their increasingly higher debts. The year of 2008 had a prominent evolution in the number of bankruptcies in Romania, especially after the instauration of the economic crisis, many creditors abusively using this insolvency procedure that in the current economic conditions is opened too easily, affecting the economic performance, even the companies’ survival.
In conclusion, the recovery must be thought as a process that begins before the respective company reaches insolvency, exactly to avoid this, and the choice of solutions must take into consideration the multitude of factors influencing the respective company.

  Insolvency in Romania – Solution for Avoiding Company Bankruptcy in the Context of Economic Crisis (661.1 KiB, 2,349 hits)

Fiscal policies must ensure the stability of taxes and duties and to propose an optimal level of taxation that does not stop economic activity and do not aggravate the financial situation of the population. Measures concerning taxation system should have the effect of training on tax payers and coordinate proper location and collection of taxes. In the study we aim to achieve reform radiography incomplete and to highlight the challenges raised by taxpayers in Romania by presenting major deficiencies that offset the competitive advantages of the Romanian fiscal system.
Tax legislation should establish legal rules on imposing taxes and penalties for non-compliance with fiscal discipline and conduct training activities in the field of tax payers.
The uncertainty caused by frequency of legislative changes and quality of the relationship with the revenue authorities, including transparency, preparedness and availability are concerns that are found in the current study.
In conclusion, in Romania the share of revenues in GDP is low, although the number of tax administrations is comparable to that of countries with a population twice as large, which confirms once again that the Romanian tax system needs further reform. Its success will be ensured through indirect stimulation of a more sustainable model of economic growth by increasing tax collection to accommodate any potential adjustments of tax system directed specifically towards the incentive to work.

  The Impact of the Economic Crisis upon Fiscal System from Romania and EU Member States (876.3 KiB, 2,124 hits)

The impact of indirect taxes is analyzed in the study of evolution, especially the VAT for the economic activity of the company studied. During the reporting period, namely January 2009 – December 2011 the supporting documents were checked which records on VAT deductible and collected were based on, in compliance with legal norms and principles of financial accounting. Also the data processed were the basis for an analysis to compare the evolution of VAT. VAT shall be paid for the entire activity of the company.

  Comparative Analysis of the Value Added Tax Evolution (712.7 KiB, 2,664 hits)

Accession to the European Union, starting price and trade exchange liberalization, alongside a strong exchange rate reform, required a depth rethinking of the customs duty system and also influenced the role of this category of tax in establishing budgetary resources.

This study reviews the impact of customs duties on changing levels of revenues collected at the state budget. The analysis used is the econometric modeling based on a single- factor regression model.
But in Romania, customs duties do not have any major impact on budget revenues and the effects of their collection on the state budget revenues are felt within two months of collection.

  Role of Customs Duties in the Formation of Budget Revenues (597.7 KiB, 4,181 hits)