Optimization of Public Revenues and Expenditure

Abstract

This article concerns public income and expenditure optimization with a focus on legal regulation contained in tax laws. The considered area is particularly legal optimization of duties that are analyzed from a state’s point of view, on the one hand, and from tax payer’s point of view, on the other hand. The state’s main concern is tax evasion which is an unwanted form of optimization from a state’s point of view. On the contrary, practice, and articles published by tax advisors, auditors and attorneysat-law show tax optimization as reaching the smallest possible tax burden for the tax payer. Tax evasion is undoubtedly socially harmful and it is necessary to fight it not only by a quality legislature drafting flawless (i.e. simple and well-arranged without a possibility of double interpretation) legal norms but even by criminal procedure. Even though a question connected to an effectiveness of tax system (e.g. an impact of taxes on taxpayers) has been relatively explored – and no one is going to be surprised that if taxes from different social, political, moral or economic reasons should be used for steadier national product redistribution, it is necessary to know impact of such taxes up front. Although the effects of taxes on individual taxpayers have an overall impact on the development of the economy, these aspects are often not given an appropriate attention in terms of tax system development and tax policy as a whole.