H21 - Taxation and Subsidies: Efficiency; Optimal TaxationReturn

The aim of this paper is to analyze, specify and isolate components that form the anticipated multiplier and crowding-out effects of state aid and to discuss its impacts on the public budgets. The author shows that some qualitative and hardly measurable aspects should be included in the multiplier effect. At the same time, various present crowding-out effects partially offset the expected positive results. Several key aspects of state aid are identified to influence the balance of public budgets. First, the distortion of prices of the production factors lead to adjusted tax and social security payments. Second, long-term changes of potential product caused by the provided state aid may create conditions for enhanced economic activity. Last but not least, administration costs connected to state aid should be carefully measured and evaluated.

This paper deals with the repayment of the excise duty on Green Diesel, which is one type of support for Czech farmers. The aim is to identify the current problems of farmers by using analysis of this support. On the basis of a model example, by comparing the farmer and the transporter, the point of view of equity of taxation is assessed. The tax burden on the transporter is greater than the tax burden on the farmer, which is against the rule of horizontal equity among tax payers. For this reason some associations propose that the government of the Czech Republic should either reduce the excise duty rate on Diesel or support other businesses too, e.g. Professional Diesel for transporters. This paper also focuses on the risk of tax evasion related to this measure. Theoretically, some ways by which tax evasion could be perpetrated are implied for farmers and predicted for transporters. In the course of the research some weaknesses which could be illegally exploited by fuel sellers for their own enrichment were identified. Another problem lies in claiming the repayment of the excise duty on Green Diesel because some wholesale fuel sellers assign different Combined Nomenclature codes to Diesel. It causes trouble to farmers when dealing with the tax authorities and it complicates smooth execution of checking. Provided Green Diesel is abolished, it is proposed to substitute it with a tax refund or an increase in the flat rate percentage of costs in the Income Tax Act.

Overall this article is focused on the tax system of the Czech Republic and its subsequent development to the present time. It is also targeted at the issues and results related to the research reports and in particular the evaluation and findings by examination the individual views of economic university students, also their extensive economic perceptions of the tax system and tax policy of this state. In essence, there were chosen some students of University Business in Ostrava and the School of Business Administration in Karviná (SU in Opava), who are citizens of the Czech Republic and have practical experience in the use of tax return. Published data and the individual results were obtained in the period of August 2011 to January 2012. The examined areas were divided into five groups, namely the extent of tax rates; clarity, application and quality of taxes; the range of the tax system; the impact of taxes on business in the Czech Republic and the purposefulness of taxes. The research results confirm prolonged problems of the Czech tax system and the overall dissatisfaction of tax payers, even though the government is willing with an effort to improve this overall state by tax reforms. This article is the output of research reports called Tax system from the examinations point of view, opinions from selected students of economics universities.

Introduction of a super-gross income represent an important change for the end of 2007 an employee's gross income was a tax base and at the same time the progress taxation was applied. Installation of a supergross income concept has caused an important increase of a tax base and a way of taxation was transformed into so called an equal taxation and the new equal tax at rate of 15 percent came into force as well.