117-0377/01 – Taxation Theory (DANTEO)

Gurantor departmentDepartment of Accounting and TaxesCredits5
Subject guarantorprof. Ing. Jan Široký, CSc.Subject version guarantorprof. Ing. Jan Široký, CSc.
Study levelundergraduate or graduateRequirementCompulsory
Year1Semesterwinter
Study languageCzech
Year of introduction2012/2013Year of cancellation
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
BIE0019 doc. Ing. Alžbeta Bieliková, PhD.
BRI0043 doc. Ing. Zuzana Brixiová, Ph.D.
KRA601 Ing. Michal Krajňák, Ph.D., MBA
S1I90 prof. Ing. Jan Široký, CSc.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit and Examination 2+1

Subject aims expressed by acquired skills and competences

Analyse basic approaches to tax theories. Compare conclusions of particular economic schools for tax practice. Apply the tax theory on concrete tax systems.

Teaching methods

Lectures
Seminars

Summary

Functions of taxes in economy, development of taxes and tax theories and classification of taxes; controversial opinions on tax principles on which base the tax system shall be constructed; analysis of tax burden, description of excessive tax burden and complex analysis of tax incidence. The course also aims at theoretical foundation of individual taxes and approches to their constructions. The course also deals with both international aspects of taxation and tax avoidance problems.

Compulsory literature:

JAMES, Simon and Christopher NOBES. The Economics of Taxation. Principles, Policy and Practice. 10th ed. Birmingham: Fiscal Publications, 2010. 324 p. ISBN 978-1906201-13-5.

Recommended literature:

AUERBACH, Alan a Martin FELDSTEIN (Eds.) Handbook of Public Economics. Vol. 1. 6th ed. Amsterdam: Elsvier, 2007. 485 p. ISBN 978-0-444-87612-6. SALANIÉ, Bernard. Economics of Taxation. Cambridge: MIT Press, 2003. 213 p. ISBN 978-0262-19486-0.

Way of continuous check of knowledge in the course of semester

Performing given tasks at seminars. Test.

E-learning

Další požadavky na studenta

Other conditions are not determined.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. TAXATION PROPAEDEUTIC Tax definition. Role of taxes in economics. Tax allocation in the cycle of financial flows in economics. Distribution, allocation and stabilizing function of taxes. Selected indicators of tax and tax burden measurement. Tax quota and the Economic Freedom Day. Appendix: The role of taxes in the Czech republic on the example of the budget system. 2. CLASSIFICATION OF TAXES AND THEIR GENESIS. DEFINITIONS IN THE AREA OF TAXATION. TAX PRINCIPLES I. Classification of taxes according to various criteria. Unit tax and ad valorem tax. Tax progressiveness vs. progressiveness of tax rate. Personal taxes and in rem taxes. OECD classification. Tax development and history of taxation. Tax canons. Tax monism. Tax reforms. Current trends in development of tax systems. Taxpayer vs. taxable person. Tax principles in the past and present. Appendix 1: Tax development in the territory of today’s Czech Republic. Appendix 2: Theoretical definition of tax and its current legislation in the Czech Republic. 3. TAX INCIDENCE I. Definition of tax incidence. Ramsey rule. Tax burden and excessive tax burden. Impact and distribution of tax burden (or excessive tax burden). Use of Lorenz curve for the purposes of measurement of changes in distribution caused by taxation. 4. TAX INCIDENCE II. Tax of factors. Tax in conditions of perfect and imperfect competition. Tax on profits vs. tax on products. Tax in conditions of profit maximizing vs. sales maximizing. 5. TAX FAIRNESS Tax fairness and efficiency. Ability of tax payment. Tax “victim”. Optimal taxation. “Second-best” theory. Taxation vs. regulation. Taxation and supply. Tax issue in terms of supply side. Tax influence on production. Tax influence of savings and investment. 6. THEORY OF INCOME TAXES Definition of taxable income. Deductible items. Existence of tax brackets. Effective tax rate. Imputed income. Character and sense of progression. Progression measurement. Choice of taxable unit. Absolutist and integrative approach to company taxation. Depreciation issues. Theory of negative income tax. Appendix: Tax theory of income taxes in the Czech Republic. 7. THEORY OF INDIRECT TAXES Characteristics of general and selective consumption taxes. Sales tax. Value added tax (hereinafter referred to as “VAT”). Special taxes on selected types of commodities: excise duties. Issue of ecological taxes. Macro economical aspects of VAT implementation. Appendix: Tax theory of consumption taxes, VAT, and excise duties in the Czech Republic. 8. THEORY OF TAXES ON PROPERTY AND WEALTH Characteristics of taxes on property and wealth. Fundamentals of property taxation. Use of principle of tax payment ability. Taxation in the event of death. Inherence tax – alternative approaches and objectives. Characteristics of other fiscal contributions. Contributions of wage bill and payroll. Appendix: Tax theory of property taxes and other fiscal contributions in the Czech Republic. 9. THEORY OF TAXATION IN INTERNATIONAL RELATIONS Duty as an import or export tax. Mercantilism. Fiscal and non-fiscal functions of duty. Protectionism vs. liberalism. Jurisdiction of resource and jurisdiction of residence. Tax resident and tax domicile. Double (multiple) taxation. Methods of avoiding of double taxation. Tax coordination and harmonization vs. tax competition. Appendix: Agreements on avoiding of double taxation in the Czech Republic. 10. OTHER ISSUES OF TAX THEORY Fiscal federalism: power to tax and tax determination. Taxes in Tiebout model. Tax payment and tax evasion. Administrative and induced costs of taxation. Election cycle and taxes. Tax relief. Economic psychology of taxation. Appendix: Description of tax evasions in the Czech Republic.

Conditions for subject completion

Full-time form (validity from: 2012/2013 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Exercises evaluation and Examination Credit and Examination 100 (100) 51
        Exercises evaluation Credit 30  16
        Examination Examination 70  35
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.FormStudy language Tut. centreYearWSType of duty
2019/2020 (N6202) Economic Policy and Administration (6202T027) National Economy P Czech Ostrava 2 Compulsory study plan
2018/2019 (N6208) Economics and Management (6202T049) Accounting and Taxes P Czech Ostrava 1 Compulsory study plan
2018/2019 (N6202) Economic Policy and Administration (6202T027) National Economy P Czech Ostrava 2 Compulsory study plan
2017/2018 (N6208) Economics and Management (6202T049) Accounting and Taxes P Czech Ostrava 1 Compulsory study plan
2017/2018 (N6202) Economic Policy and Administration (6202T027) National Economy P Czech Ostrava 2 Compulsory study plan
2016/2017 (N6208) Economics and Management (6202T049) Accounting and Taxes P Czech Ostrava 1 Compulsory study plan
2015/2016 (N6208) Economics and Management (6202T049) Accounting and Taxes P Czech Ostrava 1 Compulsory study plan
2014/2015 (N6208) Economics and Management (6202T049) Accounting and Taxes P Czech Ostrava 1 Compulsory study plan
2013/2014 (N6208) Economics and Management (6202T049) Accounting and Taxes P Czech Ostrava 1 Compulsory study plan
2013/2014 (N6208) Economics and Management (6202T049) Accounting and Taxes (00) Účetnictví a daně P Czech Ostrava 1 Compulsory study plan
2012/2013 (N6208) Economics and Management (6202T049) Accounting and Taxes (00) Účetnictví a daně P Czech Ostrava 1 Compulsory study plan
2012/2013 (N6202) Economic Policy and Administration (6210T004) European Integration (00) European Integration P Czech Ostrava 2 Choice-compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner