LEGISLATIVE FRAMEWORK OF THE TAXATION SYSTEM - “THE MAIN PILLAR OF BUDGET REVENUES”

Abstract

In the context of a market economy, a direct intervention of that State is not possible, which is why leverage is used to facilitate the state influence on the economy. The purpose of the study will be based, mainly, on shaping the fiscal policies adopted in the European Union and Romania's alignment with it. The fiscal policy of the Member States of the European Union is an important point of the general policies at EU level. In order to achieve a climate of economic and financial stability, the fiscal sovereignty of the Member States needs to be aligned with the convergence criteria at European level. As tax revenues contribute significantly to the shape of the state budget, their change would have both positive and negative influences on the socio-economic situation in the country. . In order to understand the formation of the state budget, the research methodology will require a qualitative research. This will be done by highlighting the tax legislation applied at European level and by delimiting the main features of the tax system. The preliminary results of this study refer to the provision of a general framework on how to effectively manage the tax system by tax authorities, so that the fight against tax fraud, tax evasion can lead to economic and fiscal union. It was concluded that the main function of the European Union with regard to the tax system is different from that of national tax laws. It is intended to develop rules and principles that curb and limit the power of national systems, without providing alternative taxation models.