Tax evasion and its prevention in the field of VAT and Income Tax in the Czech Republic

Bc. Magda Březinová

Master's thesis

Abstract:

The diploma thesis examines and evaluates the issue of tax evasion and its prevention in the field of VAT and income tax in the Czech Republic. Tax evasion encroaches on two different disciplines, economics and law. The main aim of the diploma thesis is to determine the types of tax evasion from the tax and criminal point of view, and to clearly show the different approach to the method of calculating damage and subsequent imposition of sanctions. Emphasis is also placed on observing communication and cooperation between the Police of the Czech Republic and the Financial Administration of the Czech Republic, who are actively involved in the fight against tax evasion. Tax evasion continues to increase, although there are many tools to prevent and detect tax evasion by the Financial Administration, the Police and other state institutions. Demonstrative calculations of the amount of damage from practical examples of VAT and income taxes (natural and legal persons) are used in determining the issue, and analysis of individual cases is made on the basis of valid laws. Furthermore, a time series analysis with a linear trend and subsequent prediction of the number of detected tax evasion for the period from 2010 to 2021 is created. Finally, a proposal is submitted to improve the prevention and elimination of tax evasion in the Czech Republic.

Keywords

VAT, Income tax, Czech Republic, tax evasion, criminal proceedings, tax fraud, Electronic Registration of Sales, Control Statement

Language used: English

Date on which the thesis was submitted / produced: 24. 3. 2021

Thesis defence

• Supervisor: prof. Ing. Mansoor Maitah, Ph.D. Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management