Value Added Tax Gap in the Czech Republic

Jana Stavjaňová
Additional contact information
Jana Stavjaňová: Department of Public Finance, Faculty of Finance and Accounting, University of Economics in Prague, nám. W. Churchilla 4, 130 67 Praha 3, Czech Republic

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2014, vol. 62, issue 6, 1427-1436

Abstract: The paper deals with an estimation of tax evasion of value added tax in the Czech Republic during 2006-2012. For the estimation I have used the concept of tax gap which is based on a comparison of the theoretical tax liability in the economy with the actual tax receipts. According to my results the VAT gap in the Czech Republic gradually increased during the observed period and it is more than CZK 100 billion in the last three years. The most significant growth of VAT gap occurred between the years 2007 and 2008 and between 2011 and 2012 when the reduced VAT rate was increased by 4 percentage points. The second part of the paper focuses on impact of my estimates on tax policy of the Czech Republic. I discuss two different possibilities how the additional revenue gained from VAT gap reduction could be used - either to decrease the government deficit and therefore to meet the Maastricht criteria or to decrease tax burden on labour which influences particularly low income workers.

Keywords: tax evasion; tax evasion estimation; VAT gap; tax policy; labour tax burden (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://acta.mendelu.cz/doi/10.11118/actaun201462061427.html (text/html)
http://acta.mendelu.cz/doi/10.11118/actaun201462061427.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mup:actaun:actaun_2014062061427

DOI: 10.11118/actaun201462061427

Access Statistics for this article

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis is currently edited by Markéta Havlásková

More articles in Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis from Mendel University Press
Bibliographic data for series maintained by Ivo Andrle ().