Abstract:

In addition to globalization, increasing freedom in trade and progressing economic integration in the world, the issue of tax regulations, taxation and interaction between tax policy and the real economic sphere is invariably an important factor determining the level of competitive advantage of enterprises and the competitiveness of the country's economy on the international arena. In this article, the author focuses on the issue of fair taxation, its impact on the existence of the informal economy, and thus on the level of economy's competitiveness, including tax competitiveness. The author attempted to examine the relationship between the level of competitiveness, the size of the shadow economy and the level of taxation in OECD countries. The conclusion states that low and fair taxes can reduce the shadow economy and thus increase the level of competitiveness of the national economy.