Tax Fraud in Accommodation Services During the COVID-19 Pandemic in the Czech Republic

SEMERÁD, Pavel, Michal RADVAN a Lucie SEMERÁDOVÁ. Tax Fraud in Accommodation Services During the COVID-19 Pandemic in the Czech Republic. Analysis and Studies CASP. Warsaw: Centre for Analyses and Studies of Taxation SGH, 2021, vol. 11, no. 1, pp. 23-31. ISSN 2451-0475.

9 Pages Posted: 11 Aug 2021

See all articles by Pavel Semerád

Pavel Semerád

Mendel University in Brno

Michal Radvan

Masaryk University, Faculty of Law

Lucie Semerádová

Ambis University

Date Written: August 8, 2021

Abstract

The situation around the COVID-19 pandemic is very serious worldwide. In addition to health problems, it also has many social and economic impacts. In our article, we have looked at the economic impact on the accommodation services sector. Despite repeated restrictions imposed by the government of the Czech Republic on this activity, there is speculation about violations of government measures. Our article aimed at identifying possible weaknesses in government measures and potential space for the emergence of a “grey economy” segment in accommodation services during the COVID-19 pandemic in the Czech Republic. Our results show that there may be a tax evasion of 35.6% relating to entrepreneurs’ income. In addition, such a businessman receives a subsidy per unoccupied room and does not pay any occupational tax for accommodated guests. For natural persons who do not hire their premises on an ongoing basis, the tax evasion rate may be 10.5%, while still no charge on stay (tourist tax) is paid.

Keywords: accommodation; coronavirus pandemic; COVID-19; tax; tourist tax; tax evasion

JEL Classification: K34, H26

Suggested Citation

Semerád, Pavel and Radvan, Michal and Semerádová, Lucie, Tax Fraud in Accommodation Services During the COVID-19 Pandemic in the Czech Republic (August 8, 2021). SEMERÁD, Pavel, Michal RADVAN a Lucie SEMERÁDOVÁ. Tax Fraud in Accommodation Services During the COVID-19 Pandemic in the Czech Republic. Analysis and Studies CASP. Warsaw: Centre for Analyses and Studies of Taxation SGH, 2021, vol. 11, no. 1, pp. 23-31. ISSN 2451-0475., Available at SSRN: https://ssrn.com/abstract=3901693

Pavel Semerád

Mendel University in Brno ( email )

Zemedelska 1
Brno, South Moravia 61200
Czech Republic

Michal Radvan (Contact Author)

Masaryk University, Faculty of Law ( email )

Veveri 70
Brno, 61180
Czech Republic

HOME PAGE: http://www.law.muni.cz

Lucie Semerádová

Ambis University ( email )

Czech Republic

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
64
Abstract Views
258
rank
475,028
PlumX Metrics