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Carousel Frauds in the Czech Republic
Journal of Finance and Accounting
Volume 2, Issue 6-2, December 2014, Pages: 1-5
Received: Sep. 12, 2014; Accepted: Nov. 7, 2014; Published: Feb. 1, 2015
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Alexej Sato, Department of International Trade, University of Economics, Prague, Czech Republic
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Collection of value added tax represents for all EU Member States an important part of the state budget, the share of which is mostly higher than 20%. Growing state expenses and endless economic and financial crisis have resulted in deep dependence on EU Member States revenues from VAT. Organized groups of tax fraudsters abuse the loopholes in current tax legislation to achieve unjust enrichment. This paper describes the practices of tax frauds in VAT collection most frequently used in the Czech Republic, summarizes measures adopted by tax administration and evaluates the effectiveness of their application.
Taxation, VAT Collection, State Budget, Carousel Fraud
To cite this article
Alexej Sato, Carousel Frauds in the Czech Republic, Journal of Finance and Accounting. Special Issue: Emerging Trends in Finance and Accounting. Vol. 2, No. 6-2, 2014, pp. 1-5. doi: 10.11648/j.jfa.s.2014020602.11
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