“Laissez-Faire” Principle in Tax Law during the Crises

Michal Radvan

Abstract


In the last three years, the whole world has been struck by several crises. These extraordinary circumstances made many governments intervene much more in the economy, including tax law amendments. Many countries, including the Czech Republic, decreased several taxes or even abolished some as a kind of subsidy. This has resulted in a sharp rise in the public debt. The paper’s main aim and also the hypothesis to be confirmed or disproved is to answer the question of whether it would not be better to leave tax systems untouched in times of economic and other crises. To meet the contribution objectives, the IMRaD structure of the article is being used. The research part indicates amendments to the tax acts in the recent three years, justified on the grounds of the economic crises caused by the COVID-19 pandemic or consequences connected with the Russian invasion of Ukraine. In the discussion, the relationships between the new legal norms and the legal behavior of taxpayers are predicted, and the effects of legal regulation on the economic behavior of taxpayers are explained. Legal amendments also affect public budgets’ revenues. In conclusion, the strengths and weaknesses of de lege lata regulation in the study area are identified, and amendments de lege ferenda are suggested.


Keywords


economic crises; tax law; public debt; tax

Full Text:

PDF

References


LITERATURE

Babčák V., Dane a daňové právo na Slovensku, Bratislava 2008.

Boháč R., Labutí píseň daně z nabytí nemovitých věcí, “Acta Universitatis Carolinae – Iuridica” 2022, vol. 68(4), DOI: https://doi.org/10.14712/23366478.2022.42.

Brzeziński B., Zasady tworzenia prawa finansowego (próba sformułowania), “Państwo i Prawo” 1986, no. 5.

Etel L., System podatkowy (zarys wykładu), Siedlce 2002.

Hoffman I., Local Development Policies in the V4 Countries – in the Light of the Impact of the COVID-19 Pandemic, “Journal of Comparative Politics” 2023, vol. 16(1).

Hoffman I., Kostrubiec J., Political Freedoms and Rights in Relation to the COVID-19 Pandemic in Poland and Hungary in a Comparative Legal Perspective, “Bialystok Legal Studies” 2022, vol. 27(2), DOI: https://doi.org/10.15290/bsp.2022.27.02.02.

Kozieł M., Taxes in the Czech Republic at the Time of COVID-19, “Analyses and Studies of CASP” 2021, vol. 11(2).

Liška M., Švarcsystém, [in:] M. Radvan, P. Mrkývka et al., Důchodové daně, Brno 2016.

McCluskey W.J., Franzsen R., Plimmer F., Introduction and Observations, [in:] Real Property Taxes and Property Markets in CEE Countries and Central Asia, eds. M. Radvan, R. Franzsen, W.J. McCluskey, F. Plimmer, Maribor 2021, DOI: https://doi.org/10.4335/2021.6.2.

Nykiel W., Sęk M., Standards, Trends and Challenges of National Tax Legislation, [in:] Tax Legislation: Standards, Trends and Challenges, eds. W. Nykiel, M. Sęk, Warsaw 2015.

Pisková L., Semerád P., Zhodnocení dopadů elektronické evidence tržeb na trh s ubytovacími službami v České, “Trendy v podnikání” 2022, vol. 12(1).

Radvan M., Are Changes in (Czech Direct) Tax Law Necessary, or Is It Just a Politicum?, “Public Governance, Administration and Finances Law Review” 2022, vol. 7(1), DOI: https://doi.org/10.53116/pgaflr.2022.1.3.

Radvan M., Taxation of Business Income in the Czech Republic, “Kwartalnik Prawa Podatkowego” 2015, no. 4.

Radvan M., Taxation of Employment Income in the Czech Republic, “Kwartalnik Prawa Podatkowego” 2016, no. 1.

Radvan M., Neckář J., Taxation of Professional Team Sport Athletes in the Czech Republic, “Public Governance, Administration and Finances Law Review in the European Union and Central and Eastern Europe” 2016, vol. 1(1).

Radvan M., Papavasilevská S., Abolition of Tax on Acquisition of Immovable Property: A Tool to Suppress the Negative Consequences of COVID-19 or a Politicum?, “Public Governance, Administration and Finances” 2020, vol. 5(2).

Radvan M., Svobodová T., Reformy daňového práva v (ne)souvislosti s COVID-19, “Studia Iuridica Cassoviensia” 2021, vol. 9(2), DOI: https://doi.org/10.33542/SIC2021-2-06.

Semerád P., Babuněk O., Brauner R., Semerádová L., Anticipated Effects of the Cancellation of the Electronic Records of Sales System in the Czech Republic, [in:] European Forum of Entrepreneurship 2023: Proceedings of the 16th International Scientific Conference, Prague (in print).

Semerád P., Radvan, M., Semerádová L., Tax Fraud in Accommodation Services during the COVID-19 Pandemic in the Czech Republic, “Analyses and Studies of CASP” 2021, vol. 11(1).

Semerád P., Rogalewicz V., Barták M., Using Electronic Record of Sales to Support Fair Budgetary Allocations across Czech Municipalities, “GeoScape” (in print).

Škop M., Salus populi jako korektiv rozhodování v pandemických situacích: past, nebo cíl?, “Časopis pro právní vědu a praxi” 2022, vol. 30(4), DOI: https://doi.org/10.5817/CPVP2022-4-5.

Tyniewicki M., Kozieł M., Current Problems of Financial Law in Poland and in the Czech Republic Including Effects of the COVID-19 Pandemic, “Bialystok Legal Studies” 2021, vol. 26(4), DOI: https://doi.org/10.15290/bsp.2021.26.04.04.

Zelenská T., Bellová J., Tax Changes in the Czech Republic in the COVID-19 Pandemic, “Review of European and Comparative Law” 2022, vol. 50(3), DOI: https://doi.org/10.31743/recl.13388.

MISCELLANEOUS

Chamber of Deputies, Explanatory Memorandum to Act no. 299/2020 Coll., Amending the Tax Acts and the Compensation Bonus Act, Prague 2020.

Chamber of Deputies, Explanatory Memorandum to Act no. 386/2020 Sb., Abolishment of the Act on the Tax on the Acquisition of Immovable Property, Prague 2020.

Chamber of Deputies, Explanatory Memorandum to Act no. 540/2020 Sb., Amending the Income Tax Act, and certain other acts, Prague 2020.

Chamber of Deputies, Explanatory Memorandum to Act no. 39/2021 Sb., Amending the Income Tax Act, Prague 2020.

Chamber of Deputies, Explanatory Memorandum to Act no. 131/2022 Sb., Amending the Excise Duty Act, Prague 2022.

Chamber of Deputies, Explanatory Memorandum to Act no. 142/2022 Sb., Amending the Income Tax Act, the Road Tax Act and the Air Protection Act, Prague 2022.

Chamber of Deputies, Explanatory Memorandum to Act no. 366/2022 Sb., Amending the Value Added Tax Act, the Income Tax Act, and other Acts, Prague 2022.

Chamber of Deputies, Explanatory Memorandum to Act no. 458/2022 Sb., Abolition of the Revenue Registry Act, Prague 2022.

ONLINE SOURCES

Bidrmanová M., Šéf spořitelny: Výnos z válečné daně nemusí být tak tučný, 14.2.2023, https://www.seznamzpravy.cz/clanek/ekonomika-byznys-rozhovory-sef-cs-vynos-z-valecne-dane-nemusi-byt-tak-tucny-jak-si-stanjura-predstavuje-225560 (access: 29.3.2023).

Chamber of Deputies, Parliamentary Print 254: Amendment to the Value Added Tax Act – EU, 22.6.2022, https://www.psp.cz/sqw/historie.sqw?o=9&T=254 (access: 22.3.2023).

Chamber of Deputies, Parliamentary Print 874/0: Government Bill Amending Certain Tax Laws in Connection with the SARS-CoV-2 Coronavirus, Including the Explanatory Memorandum, 25.5.2020, https://public.psp.cz/sqw/text/tiskt.sqw?O=8&CT=874&CT1=0 (access: 20.3.2023).

Chamber of Deputies, Parliamentary Print 910: Government Bill Amending Certain Tax Laws – EU, 24.6.2020, https://www.psp.cz/sqw/historie.sqw?o=8&t=910 (access: 20.3.2023).

Fischer J., Mazouch P., Finardi S., Dopad změny sazby daně z příjmů fyzických osob na spotřebu domácností, 1.11.2020, https://www.vse.cz/wp-content/uploads/VSE_studie_dopad-zmeny-sazby-DPFO-na-spotrebu-domacnos-ti.pdf?fbclid=IwAR0ksw4PfJ4XhkHs8KTdHK72fTHnfLdf9YeZNYjkgbE6MIbOdEEHTF0zlNo (access: 29.3.2023).

Government of the Czech Republic, Výsledky jednání vlády 11. ledna 2023, 11.1.2023, https://www.vlada.cz/cz/media-centrum/aktualne/vysledky-jednani-vlady-11--ledna-2023-202214 (access: 20.3.2023).

Hlaváček M, Pavel J., Fiskální náklady pandemie COVID-19 v České republice, 1.4.2020, https://unrr.cz/wp-content/uploads/2020/04/Informa%C4%8Dn%C3%AD-studie-Fisk%C3%A1ln%C3%AD-n%C3%A1klady-pandemie-Covid-19-v-%C4%8Cesk%C3%A9-republice.pdf (access: 20.3.2023).

IEA, Anti-Inflation Shield: Fuel VAT Reduction, 6.12.2022, https://www.iea.org/policies/16724-anti-inflation-shield-fuel-vat-reduction (access: 31.3.2023).

Investopedia Team, What Is a Laissez-Faire Economy, and How Does It Work?, 26.7.2022, https://www.investopedia.com/terms/l/laissezfaire.asp#citation-5 (access: 19.3.2023).

Kalíšková K., Münich D., Prokop D., Šoltés M., Vyhodnocení dopadů návrhů na zrušení superhrubé mzdy, 25.11.2020, https://idea.cerge-ei.cz/…pdf (access: 29.3.2023).

Miler M., EET ztížila restauracím a hospodám podvody. Majitelé přiznávají více tržeb, náklady přenesli na zákazníky vyššími cenami, 2.12.2017, https://byznys.ihned.cz/c1-65975740-eet-ztizila-restauracim-a-hospodam-podvody-majitele-priznavaji-vice-trzeb-naklady-prenesli-na-zakazniky-vyssimi-cenami (access: 31.3.2023).

Ministry of Finance, Coronavirus (COVID-19), https://www.mfcr.cz/cs/aktualne/koronavirus-covid-19 (access: 27.3.2023).

Ministry of Finance, Single Collection Point, 9.6.2010, https://www.mfcr.cz/cs/archiv/jedno-inkasni-misto (access: 30.3.2023).

Reuters, Poland to Cut VAT on Food to Zero from February – Finance Minister, 22.12.2021, https://www.reuters.com/markets/europe/poland-cut-vat-food-zero-february-finance-minister-2021-12-22 (access: 31.3.2023).

Žurovec M., Daňová revoluce se blíží. Poslanci schválili daňový balíček, 10.12.2020, https://www.mfcr.cz/cs/aktualne/tiskovezpravy/2020/danova-revoluce-se-blizi-40169 (access: 20.3.2023).

LEGAL ACTS

Act No. 261/2007 Sb., on the stabilisation of public budgets.

Act No. 137/2020 Sb., on certain adjustments in the field of revenue registration in connection with the declaration of a State of emergency.

Act No. 449/2020 Sb., amending Act no. 137/2020 Sb. on certain adjustments in the field of revenue registration in connection with the declaration of a State of emergency (as amended).

Act No. 286/2021 Sb., amending Act No. 592/1992 Sb., on public health insurance premiums.

Act No. 128/2022 Sb., on measures in the field of taxation in connection with the armed conflict on the territory of Ukraine caused by the invasion of the troops of the Russian Federation.

Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ L 347/1, 11.12.2006).

Council Implementing Decision (EU) 2022/865 of 24 May 2022 authorising the Czech Republic to introduce a special measure derogating from Article 287 of Directive 2006/112/EC on the common system of value added tax (OJ L 151/66, 2.6.2022).

Directive 1999/62/EC of the European Parliament and of the Council of 17 June 1999 on the charging of heavy goods vehicles for the use of certain infrastructures (OJ L 187/42, 20.7.1999).




DOI: http://dx.doi.org/10.17951/sil.2023.32.2.225-247
Date of publication: 2023-06-27 10:36:55
Date of submission: 2023-05-06 17:47:35


Statistics


Total abstract view - 689
Downloads (from 2020-06-17) - PDF - 0

Indicators



Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Michal Radvan

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.