EconPapers    
Economics at your fingertips  
 

Impact of Svarc system on Tax Revenues in the Czech Republic

Dopad švarcsystému na daňové příjmy v České repubice

Savina Finardi -Anna Melicharová

Český finanční a účetní časopis, 2021, vol. 2021, issue 4

Abstract: The article discusses the importance of the Svarc system and its impact on tax revenues in the Czech Republic. According to Czech case law, part of the income is legally taxed in the partial tax base on income from independent activity, although it should rather be income from dependent activity. This is a main feature of the Czech tax system, and it has impact on Czech public finance. Tax revenues of individuals in the Czech Republic are driven mainly by dependent activity, i.e., income from employment. For the analysis, a method was chosen that focuses on the share of self-employed persons without employees in the working age population, according to the economic branches of NACE. The aim of the article was to identify the economic sectors in which, according to Eurostat data, the Svarc system is being overused and subsequently, the lost personal income tax and social security and health insurance from employment were estimated. The total estimate of such tax gap is CZK 14.4 billion.

Keywords: Tax Revenues; Svarc system; Tax Optimization; Daňové příjmy; Švarcsystém; Daňová optimalizace (search for similar items in EconPapers)
JEL-codes: H20 H26 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://cfuc.vse.cz/doi/10.18267/j.cfuc.566.html (text/html)
http://cfuc.vse.cz/doi/10.18267/j.cfuc.566.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:prg:jnlcfu:v:2021:y:2021:i:4:id:566

Ordering information: This journal article can be ordered from
Český finanční a účetní časopis, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
http://cfuc.vse.cz

DOI: 10.18267/j.cfuc.566

Access Statistics for this article

Český finanční a účetní časopis is currently edited by Karel Brůna

More articles in Český finanční a účetní časopis from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().

 
Page updated 2022-04-30
Handle: RePEc:prg:jnlcfu:v:2021:y:2021:i:4:id:566