THE IMPACT OF TAX EVASION ON THE ECONOMIC SCENARIO

Abstract

This study analyzes the economic impacts of tax evasion in Brazil, focusing on the macroeconomic effects arising from tax evasion. The research, qualitative in nature and based on bibliographic and documentary review, investigates four central axes: market competition distortion, allocative inefficiency of resources, increased tax burden for formal agents, and erosion of institutional credibility. The results demonstrate that tax evasion operates as a mechanism of economic distortion, rewarding illegality to the detriment of productive efficiency, disproportionately burdening compliant taxpayers, and undermining trust in institutions. It is concluded that combating tax evasion goes beyond the revenue sphere, constituting an imperative for tax justice, fair competition, and sustainable economic development. Simplification of the tax system, strengthening transparency and balancing coercion and legitimacy are recommended as essential measures to break the vicious cycle of tax evasion.