Some consideration on the definition of tax waste

Abstract

Defining tax waste is a challenge for tax authorities and academics as well. Public spending is often too high compared to their outcome and effectiveness raising higher concerns than the tax burden itself. Though “tax waste” is constantly used in the media and in politics, it has never been clearly defined scientifically. The tax waste has not decreased over the years, quite the opposite. But as long as the term is not clearly defined, one is in the realm of speculation. Without a definition, such processes cannot be evaluated legally either. A criminal offense for tax evasion is increasingly being demanded, but that would require a definition and criteria derived from it. This article analyses the current situation regarding the use of the term “tax waste” and offers suggestions for the criteria of a definition.