European Financial and Accounting Journal 2014, 9(2):66-78 | DOI: 10.18267/j.efaj.120

Estimation of a Tax Gap in the Personal Income Tax by Means of National Accounts

Savina Finardi1, Alena Vančurová2
1 Ing. Savina Finardi, Ph.D. - Associate Professor; Department of Public Finance, Faculty of Finance and Accounting, University of Economics, Prague, W. Churchill Sq. 4, 130 67 Prague 3; .
2 prof. Ing. Alena Vančurová, Ph.D. - Professor; Department of Public Finance, Faculty of Finance and Accounting, University of Economics, Prague, W. Churchill Sq. 4, 130 67 Prague 3; .

The article deals with the estimation of a tax gap incurred by devastation of a tax base and concentrates on undervaluation of incomes from an independent activity. The distortion rate was estimated by means of database data from national accounts; the database is internationally comparable. The authors built on indexes that monitor production and intermediate consumption in monitored economies and which are similar to the Czech Republic in some aspects - this concerns Slovakia, Sweden and Austria. Based on these calculations, real tax bases of people with incomes from an independent activity were set. The result of our paper is a total tax gap in the Czech Republic in 2011 and it is CZK 4,6bn - it is such a gross estimation of uncollected collection into public budgets for 2011.

Keywords: Czech Republic, National Accounts, Personal Income Tax, Tax Gap
JEL classification: H26

Published: June 1, 2014  Show citation

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Finardi, S., & Vančurová, A. (2014). Estimation of a Tax Gap in the Personal Income Tax by Means of National Accounts. European Financial and Accounting Journal, 9(2), 66-78. doi: 10.18267/j.efaj.120
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