117-0576/01 – Tax theory and politics (DTP)

Gurantor departmentDepartment of Accounting and TaxesCredits6
Subject guarantorprof. Ing. Jan Široký, CSc.Subject version guarantorprof. Ing. Jan Široký, CSc.
Study levelundergraduate or graduateRequirementCompulsory
Study languageEnglish
Year of introduction2019/2020Year of cancellation2020/2021
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
KRA601 doc. Ing. Michal Krajňák, Ph.D.,MBA,LL.M.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit and Examination 3+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 of EU.

Teaching methods



The aim of the course is to familiarise students with the more advanced types of tax theories. The graduate of the course should have knowledge of tax incidence and construction of particular types of taxes and should be able to applicate them to the realities of the tax system of the Czech Republic, or other European Union countries. The course starts with an explanation of basic terminology, the role of taxes in economy, development of taxes and tax theories and sorting taxes according to various aspects. Furthermore, the tax principles on the basis of which the tax system should be built and controversial views on the use of these principles, are described. Following are analyses of tax burden, the issue of influence of taxes on the market mechanism and particular operators in the economic market, description of the excessive tax burden and the overall tax incidence, i.e. the problems that form the core of tax theory. The next parts of the course are devoted to the theoretical bases of particular types of taxes and approaches to their construction. Where possible, the theoretical knowledge is confronted with tax practice, especially with tax system of the Czech Republic, or other EU and OECD countries.

Compulsory literature:

GERZOVA, Larisa et all., eds. European Tax Handbbok 2018. Amsterodam, IBFD: 2018. 1204 p. ISBN 978-9-8722-455-4. JAMES, Simon and Christopher NOBES. The Economics of Taxation. Principles, Policy and Practice. 17th ed. Birmingham: Fiscal Publications, 2017. 326 p. ISBN 978-1-906201-35-7.

Recommended literature:

THOM, Michael. Tax Politics and Policy. New York: Routledge, 2017. 263 p. ISBN 978-1-13818338-4. ŠIROKÝ, Jan a Regína STŘÍLKOVÁ. Trend, Development, Role and Importance of VAT in the EU. Brno: CERM, 2015. 110 s. ISBN 978-80-7204-908-0. ŠIROKÝ, Jan, STŘÍLKOVÁ, Regína a Michal KRAJŇÁK. Trend, Development, Role and Importance of Corporate Taxes in the EU. Brno: CERM, 2016. 109 s. ISBN 978-80-7204-940-0.

Way of continuous check of knowledge in the course of semester


Other requirements

Additional requirements for students not determined.


Subject has no prerequisities.


Subject has no co-requisities.

Subject syllabus:

Framework syllabus of lectures: 1. Tax propedeutics. The role of taxes in economy. 2. Macroeconomic models of taxation effects: model with autonomous tax, income tax model, the model with balanced budget. 3. Taxes classification. Taxes genesis. 4. Tax principles and tax theory development. Efficiency versus justice. Contribution of Ramsey and Pigou. 5. Tax incidence: Perfect competition. Taxes on the market of goods and services. The role of price and income elasticity. Harberger's model. Ramsey taxes. Imperfect competition. Taxes in the market of production factors. Excess burden of taxation. Hicks' model. 6. Analysis of taxes impact on the households. Tax neutrality. Use of Lorenz curve modifications in tax theories. Measuring of global progressivity. 7. Income tax theory: personal income taxes, corporate income taxes, property taxes. 8. Theory of consumption taxes: turnover taxes, excise duties, so-called environmental taxes. 9. Theories of other charges of tax character: Insurance, local taxes, customs duty. Fiscal federalism. 10. Theory of Tax Evasion.

Conditions for subject completion

Full-time form (validity from: 2019/2020 Winter semester, validity until: 2020/2021 Summer semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Credit and Examination Credit and Examination 100 (100) 51
        Credit Credit 30  16
        Examination Examination 70  35
Mandatory attendence parzicipation: Attendance at seminars is set at a minimum of 75 %.

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2020/2021 (N0311A050013) Applied Economics (S01) Economic Development AE P English Ostrava 2 Compulsory study plan
2019/2020 (N0311A050013) Applied Economics (S01) Economic Development AE P English Ostrava 2 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner