| Course Unit Code | 117-0377/01 |
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| Number of ECTS Credits Allocated | 5 ECTS credits |
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| Type of Course Unit * | Compulsory |
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| Level of Course Unit * | Second Cycle |
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| Year of Study * | First Year |
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| Semester when the Course Unit is delivered | Winter Semester |
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| Mode of Delivery | Face-to-face |
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| Language of Instruction | Czech |
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| Prerequisites and Co-Requisites | There are no prerequisites or co-requisites for this course unit |
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| Name of Lecturer(s) | Personal ID | Name |
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| KRA601 | doc. Ing. Michal Krajňák, Ph.D.,MBA,LL.M. |
| BIE0019 | doc. Ing. Alžbeta Bieliková, PhD. |
| BRI0043 | doc. Ing. Zuzana Schwidrowski, Ph.D. |
| Summary |
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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. |
| Learning Outcomes of the Course Unit |
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Analyse basic approaches to tax theories.
Compare conclusions of particular economic schools for tax practice.
Apply the tax theory on concrete tax systems. |
| Course Contents |
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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. |
| Recommended or Required Reading |
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| Required Reading: |
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| 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. |
KUBÁTOVÁ, Květa. Daňová teorie a politika. 5. vyd. Praha: Wolters Kluwer ČR, 2010, 276 s. ISBN 978-80-7357-574-8.
MUSGRAVE, Peggy a Richard MUSGRAVE. Veřejné finance v teorii a praxi. Praha: Management Press, 1994, 946 s. ISBN 80-85603-76-4.
ŠIROKÝ, Jan a kol. Daňové teorie. S praktickou aplikací. 2. vydání. Praha: C.H.Beck, 2008, 301 s. ISBN 978-80-7400-005-8. |
| Recommended Reading: |
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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. |
BUCHANAN, James. Veřejné finance v demokratickém systému. Praha: Computer Press, 1998. 664 s. ISBN 80-7226-116-9.
KOLÁŘ, Pavel, Leoš VÍTEK, Jan PAVEL a kol. Zdanění a neutralita. Praha: Eurolex Bohemia, 2005. 183 s. ISBN 80-86861-56-2.
MEDVEĎ, Jozef, Juraj NEMEC a kol. Verejné financie. Bratislava: Sprint dva, 2011. 640 s. ISBN 978-80-89393-46-6. |
| Planned learning activities and teaching methods |
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| Lectures, Seminars |
| Assesment methods and criteria |
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| Task Title | Task Type | Maximum Number of Points
(Act. for Subtasks) | Minimum Number of Points for Task Passing |
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| Exercises evaluation and Examination | Credit and Examination | 100 (100) | 51 |
| Exercises evaluation | Credit | 30 | 16 |
| Examination | Examination | 70 | 35 |