Influence of the Introduction of Tax Assignations on the Amount of Donations and Subsidies

Tax assignations give tax-paying citizens an opportunity to make decisions about a portion of their income tax paid and determine its recipient. Tax assignations are an additional source of income for non-governmental non-profit organizations. The Czech Republic has not introduced them yet, however, the other Visegrád Group countries have embodied this concept in their tax systems. The aim of the paper is to confirm or possibly refute the benefits of the concept of tax assignations for the current tax system of the Czech Republic. The influence of the possible introduction of tax assignations is being investigated in connection with the amount of government subsidies and in relation to motivation for philanthropic giving. In this context, the paper presents current conditions for the introduction of tax assignations. It also discusses the pros and cons of tax assignations that may serve as main arguments for or against the introduction of tax assignations in the Czech Republic. The focus of this paper is on the application of tax assignations in Slovakia as Slovakia with its historical development and structure is very close to the Czech Republic. If tax assignations are introduced in the Czech Republic, a similar development can be expected. Analysis of statistical data for Slovakia was used to explore whether tax assignations affected the amount of transfers to non-governmental organizations and whether tax assignations could be a good additional source of funding for non-profit organizations in the Czech Republic.O

The impact of changes in accounting regulations on agricultural entities and their business accounts since 2016

Financial accounting in the European Union is harmonized through directives. In 2013 Directive 2013/34/EU of the European Parliament and the Council was issued. It aims to improve the performance of micro and small entities by reducing their administrative burden. The primary requirement of the Directive is to introduce entity size classification. The paper identifies the impact of the transposition of the Directive on the size distribution of agricultural enterprises in the V4 countries and some other countries of the European Union using data from the Amadeus database. In the Czech Republic obligations which are part of financial reporting are determined for agricultural enterprises and their impact on fundamental accounting principles is detected. The implementation of the Directive in the Czech Republic significantly influenced valuation, accounting for and specially reporting of inventories of a company's own activity and capitalization, which are typical for agricultural enterprises. A comparison of the regulation effective until the end of 2015 with the new regulation showed the impact on the amount of profit and turnover, which are also quantified. The degree of harmonization with IAS/IFRS is also examined.O

Significant aspects of the national mergers in the Czech Republic

The paper deals with issues of national mergers carried out in the year 2015 and 2016. The development of the mergers is characterized by the fact that it is a multidisciplinary areas (tax, accounting and legal), in practice the most widespread method is Mergers through consolidation. The analysis is therefore focused just on this type of merger. It examines the development of mergers carried out in the Czech Republic as well as globally. In the global perspective,is processed the number of mergers and acquisitions, and the trends in company transformations are monitored. For the Czech Republic is analyzed the number of mergers, number of merging companies, including their legal form, the number of registered mergers by individual Regional Courts, the date of entries, determination of the appointed date of merger and date of completion of merger project. Consequently are presented features typical of the implementation of national mergers. The paper also examines the relationship between the number of mergers and GDP and PX index from 2002 to 2016.O

Social Responsibility for Insurance Companies

The aim of the paper is to verify the quantity and quality of reporting non-financial information disclosed by commercial insurance companies based in the Czech Republic and foreign commercial insurance companies with branches in the Czech Republic. The obligation to disclose non-financial information was introduced in 2017 by the implementation of Directive 2014/95/EU in Czech accounting legislation. To verify the quantity and quality of reporting non-financial information before and after the implementation of the Directive, a comparative analysis was used, examining the years 2016 and 2020. Key indicators from five main areas of non-financial reporting were identified and subsequently the level of their reporting by insurance companies was monitored. All insurance companies in the CR, divided into three main groups, were analysed. These are insurance companies obliged to disclose non-financial information, insurance companies defined as large entities under the Accounting Act, and a group of other insurance companies. The quality of the information reported was assessed using a scoring scale. At the same time the level of reporting non-financial information in the sector of financial institutions in the Czech Republic was compared with the level of reporting in the V4 countries, Germany, and France. Another part of the research was statistical modelling, which by means of correlation and regression analysis identified which factors influence the quality and the level of non-financial reporting. It was shown that gross written premiums and number of employees have the greatest influence. The research revealed that after the implementation of the Directive, there was an increase in non-financial reporting not only in the group of insurance companies obliged to report non-financial information but also in insurance companies with no obligation to do so. The increase in reporting was therefore not only caused by the implementation of the Directive in Czech accounting legislation but also by the growing trend of social responsibility.O

Contributions Burden on Persons Active in Agriculture in Relation to Pension Aspects

The paper focuses on the area of the burden of contributions to state budget with an emphasis on pension insurance contributions of employees and self-employed persons active in the agricultural sector with regard to the amount of their future retirement pension. The comparison shows that self-employed workers in agriculture contribute to state budget about 2.5 times less than employees with comparable net income. As a result, the level of pensions is insufficient, predominantly for entrepreneurs whose pensions only amount to 39 to 45% of their real net income. On the basis of analysis of results from different models, calculations were made of the necessary monthly contributions to the supplementary pension savings plans that would ensure retirement living standards equivalent to 70% of net income earned during working life. The paper also quantifies redistributive effects by studying pension contributions of persons active in agriculture during their working life and pension withdrawals in retirement. The results are compared with those obtained from a group of employees. Contributions of the self-employed are also compared within the V4 countries. In the conclusion of the paper there are some recommendations that might lead to a reduction in the gap in contributions and better living standards for future old-age pensioners.O

The Proposal of the Changes in the Taxation of Income of the Non-profit Organizations

The paper is focused on the issue of the taxation of incomes of the non-governmental non-profit organizations, especially the civic associations in the conditions of the Czech Republic and in the selected countries of the European Union (Austria, Slovakia, Germany). The main emphasis is put on the comparison of the corporate income tax of the studied countries. Particularly the tax benefits that are provided to the non-profit organizations in the individual countries are compared here. This paper points to the current situation in the Czech Republic, where there is no clear legislation that would regulate the activities by the studied organizations. Changes in the taxation of the incomes of non-profit organizations are designed to eliminate absences with regard to the simplicity and clarity of the individual provisions, and also to prevent misuse of the benefits and to the speculative behavior of tax entities

Taxation of Non-profit Organizations in the Selected European Countries: the Proposal of the Changes for the Czech Republic

The paper is focused on the issue of taxation of income of non-profit organizations, especially to associations (clubs) in the Czech Republic, Slovakia and the United Kingdom. This paper is part of research, where the main emphasis is placed on the comparison of the tax benefits which are provided to non-profit organizations in different countries. This paper points to the current situation in the Czech Republic where despite the changes that have occurred in connection with the new Civil Code, there is still missing clear legislation that would regulate the activities of the monitored organizations. Changes in the taxation of income of non-profit organizations are designed with regard to the elimination of deficiencies in order to prevent the abuse of the benefits and the speculative behavior of tax entities

Proposals of changes in the financial statements of non-profit organizations

Financial statements (balance sheet, profit and loss statement) intended for profit and non-profit organizations have large number of differences in terms of content of individual items and also with regard to their formal structure. This is due to the existence of different types of accounting entities for which there are created sets of accounting rules. Need for separate set of accounting rules results from their objectives, management rules, performed activities and certain specific of costs, revenues, assets and liabilities. The differences found on the basis of comparative analysis in this paper are evaluated and subsequently there are recommended changes of the statements so that they would be more useful for the purposes of economic analysis. The paper also identified problems that arise in connection with the evaluation of the efficiency of this type of organizations and subsequently there are recommended tools of financial analysis suitable for evaluation of non-profit organizations and the specifics of non-profit sector are pointed out. The paper presents also the proposal to change the Decree 504/2002 Coll. so as to avoid distortion of financial statement closing of non-profit organizations, and also with regard to their higher explanatory power

Harmonisation efforts in the field of accounting of public sector

Increasing requirements for financial reporting of public sector led to a need to create a system that would provide relevant and reliable information for management of accounting entities of public sector and also to increase the quality of accounting and financial statements of public institutions. The International Public Sector Accounting Standards Board (IPSASB) is therefore creating high-quality financial reporting standards for public sector (IPSAS). Paper points out the ongoing reform of accounting in the field of public finances in the Czech Republic, where there are substantial changes in accounting rules and it also introduces new accounting methods. Regarding the fact that accounting of public sector is nowadays accounting system perhaps with the greatest potential of development, paper highlights the differences in financial reporting in accordance with Czech legislation and IPSAS system. It tries to catch the essential differences that arise from the financial legislation, the accounting basis and also from the content of financial statements. The paper also indicates the difference between Czech Accounting Standards for selected accounting entities that maintain accounts in accordance with Decree No. 410/2009 Coll. and International Public Sector Accounting Standards (IPSAS). There is also recommended approach to the creation of national standards with regard to international harmonization