The boundaries of legality in the issue of the financing of the sports clubs from the perspective of income taxes and the upcoming amendment of the civil code

Lenka Bartková and Radmila Herzánová

Ekonomika a Management, 2014, vol. 2014, issue 4

Abstract: In the context of our contribution, we focus on increasingly occurring in the context of the financing of the downside of sports clubs, when such organizations are being used, or directly established to the financial benefit of several persons and, consequently, to tax evasion. The contribution of further appeals to the compliance with ethical behaviour in the context of secondary economic activity of sports clubs. The main objective of this paper is the analysis of the possible ways of tax evasion through formally established sports clubs in the context of an approved form of the new civil code. The post was processed with the use of a standard methodology, mainly secondary analysis of documents and legislation and, consequently, the synthesis of knowledge. Analysis of the income tax Act and the relevant regulations and rules, we have pointed out the problematic moments in this Act in connection with the cash flow from the natural and legal persons to the fictitious sports clubs for the purpose of reducing tax liabilities and other legal charges. The existing practice, we compare with the options in the context of a new form of the civil code and pointed out the fact that this law does not prevent the unethical behavior of some managers. Although the each step made by entrepreneurs in the context of our contribution are based on applicable legislation, their uniquely special-purpose behavior already exceeds the border of legality. Due to the increasing need for socially responsible behaviour we consider important to include aspects of business ethics in the education and training of students in all disciplines.

Keywords: etika; ethics; Neziskové organizace; Sports club; Income Tax; Legislature; Nonprofit Organization; Tax Evasion; Sportovní klub; Daň z příjmu; Legislativa; Daňový únik (search for similar items in EconPapers)
JEL-codes: L31 (search for similar items in EconPapers)
Date: 2014
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