153-0336/05 – Taxation Theory (DANTEO)
| Gurantor department | Department of Public Economics | Credits | 5 |
| Subject guarantor | prof. Ing. Jan Široký, CSc. | Subject version guarantor | prof. Ing. Jan Široký, CSc. |
| Study level | undergraduate or graduate | Requirement | Choice-compulsory |
| Year | 1 | Semester | winter |
| | Study language | Czech |
| Year of introduction | 2011/2012 | Year of cancellation | 2011/2012 |
| Intended for the faculties | EKF | Intended for study types | Follow-up Master |
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
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:
Recommended literature:
Additional study materials
Way of continuous check of knowledge in the course of semester
Performing given tasks at seminars.
E-learning
Other requirements
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. Avoiding the 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
Occurrence in study plans
Occurrence in special blocks
Assessment of instruction