Ján Dobrovič

Department of Management

Institute of Technology and Business in České Budějovice,

Czech Republic

24574@mail.vstecb.cz

Action plan on sustainability of fight against tax fraud and tax evasion: EU countries comparison

Rastislav Rajnoha

Рan-European University, Bratislava,

Slovakia, 

rastislav.rajnoha@paneurouni.com

Iveta Voznakova

University of Business and Law Prague,

Czech Republic

voznakova@is.vspp.cz

Petra Pártlová

Department of Management

Institute of Technology and Business in České Budějovice,

Czech Republic

partlova@mail.vstecb.cz

Abstract. The aim of the article is to describe the activities of tax authorities in carrying out tax inspections and also the activities of its bodies aiming at eliminating tax fraud and tax evasion in order to maintain the sustainable development of individual Member States' economies. Given the fact that VAT revenues represent a substantial share of all EU state budget revenues, financial administration should pay attention to this issue as well, starting with registration of taxpayers, through inspections and efficient and quick actions of distrainors in recovering tax arrears. The biggest losses incurred by individual state budgets are caused by VAT frauds which are having a character of an organized crime. It is therefore inconceivable that their detection, documentation, enforcement and punishment are not organized properly. The anti-fraud measures proposed in this paper are based on legislation, and their success implies a centralized approach to addressing the issue and seeking coordinated efforts by competent EU Member States. Neither of the proposed anti-fraud instruments is sufficiently effective when applied individually. However, by adopting all the measures proposed and their consistent implementation in practice, we can minimize the rate of VAT frauds committed.

Received: February, 2019

1st Revision: June, 2019

Accepted: November, 2019

DOI: 10.14254/2071-8330.2019/12-4/18

JEL Classification: G21

Keywords: tax evasion, tax fraud, value added tax, predictive statistical model, EU Member States