What question did this study set out to answer?

This research investigates how tax authority litigation affects the routes by which firms deregister in Romania.

August 2, 20260 citationsOpen Access

Tax-authority litigation and BPI-linked deregistration: firm-level evidence from Romanian construction

Key Points

This research investigates how tax authority litigation affects the routes by which firms deregister in Romania.
Analyzed a proprietary extract from Wolters Kluwer of 29,183 Romanian construction firms
Examined accounting histories from 2012 to 2024
Compared deregistration with and without entry in the national insolvency bulletin (BPI)
Identified a significant relationship between tax litigation and the mode of deregistration
Firms involved in tax litigation are more likely to deregister through the insolvency bulletin
Results suggest tax authority actions influence firm deregistration behaviors

Abstract

Firms leave the register by two routes the data record differently: with an entry in the national insolvencybulletin (BPI), or without one. We ask whether litigation involving the tax authority separates them,using a proprietary Wolters Kluwer extract of 29,183 Romanian construction firms (CAEN 4120) withaccounting histories for 2012–2024.

KI fragen

Bookmark

View Full Paper