CYIL vol. 13 (2022)

MARCELA HRADECKÁ

CYIL 13 ȍ2022Ȏ

Introduction A characteristic feature of international trade from a legal point of view is any exchange of goods or services made between legal entities from different countries. From a tax point of view, however, there are still other conditions entering into international transactions and deals, in particular transport of goods or transport of inventory and assets to another Member State or to a third country or, if formulated in tax terms, the transfer of inventory and assets from the founder to a branch plant situated in another Member State or in a third country. Another important tax notion is the notion of the economic owner, as the matter concerns the transfer of the right to dispose of the goods as their owner, even in the situation when the purchaser is not the legal owner of those goods or inventory or assets. The establishment of the customs union within the framework of the European Union and the partial harmonisation of taxes within the European Union have so far made it possible to practise free movement of goods, persons, services and capital. This free movement of goods on the European market brings a lot of advantages, but also provides space for tax evasions. The most affected tax in terms of tax offences is the value added tax, together with excise duties. Triangular trade is a special tax regime under the “Simplified procedure for the supply of goods within the territory of the European Union”, regulated by the Value Added Tax Act and subject to specific statutory conditions, namely that the trade is associated with a single transport operation and is carried out between three value added tax payers from different EU Member States. Nevertheless, from a legal point of view, contracts are concluded between the individual participants active in this international trade. A chain trade is a transaction in which the right to dispose of the goods as the economic owner is transferred at least twice in the course of one transport deal of the goods. In this case, from legal and tax points of view, the matter already concerns individual international bilateral transactions, which are very problematic from a value added tax point of view, since the tax treatment of the individual transactions made is assessed according to the related transport carried out to the detriment of a specific participant in the transaction. This international chain trade, unlike triangular transactions, may extend to third countries, i.e., to the countries situated outside the Member States of the European Union. Tax offences may occur in the course of implementation of economic activities of natural persons and legal entities, as well as in the everyday life of natural persons, since the obligation to tax incomes (profits) and to file a tax return or a tax report is an obligation of all persons and entities who are required by law to do so. Tax offences include the evasion of tax, duties or of similar compulsory payments. Furthermore, the offence of a failure to pay tax, mandatory social security contributions and similar compulsory payments. In connection with tax offences, it is also necessary to draw attention to the offence of misrepresentation (distortion) of the data concerning the state of the economic management and assets in the accounting records or concealment of statutory accounting books.

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