The VAT lottery as a charitable lottery
| Thesis title in Czech: | Bločková loterie jako loterie přispívající k veřejnému statku |
|---|---|
| Thesis title in English: | The VAT lottery as a charitable lottery |
| Key words: | DPH, charitatívna lotéria, verejný statok, daňové úniky na DPH |
| English key words: | VAT, charitable lottery, public good, VAT evasion |
| Academic year of topic announcement: | 2012/2013 |
| Thesis type: | Bachelor's thesis |
| Thesis language: | angličtina |
| Department: | Institute of Economic Studies (23-IES) |
| Supervisor: | doc. PhDr. Martin Gregor, Ph.D. |
| Author: | hidden - assigned by the advisor |
| Date of registration: | 06.03.2014 |
| Date of assignment: | 06.03.2014 |
| Date and time of defence: | 16.06.2015 08:00 |
| Venue of defence: | IES |
| Date of electronic submission: | 12.05.2015 |
| Date of proceeded defence: | 16.06.2015 |
| Opponents: | Mgr. Michal Paulus |
| URKUND check: | |
| Guidelines |
| As Slovakia's budget suffers from a growing deficit, the policy makers look for effective ways to alter the situation. One strategy of the Slovak government is to decrease tax avoidance by a VAT lottery. Every customer who pays value-added tax may convert each sales receipt into a lottery ticket. It is expected that businesses will be forced to pay the whole amount of tax collected to exchequer. This way, all purchased goods and services go through official billing procedure. This type of lottery exists for more than 50 years in Taiwan and its effects there are remarkable. Yet, from the theoretical point of view, a VAT lottery is still an unexplored phenomenon. |
| References |
| 1. Giebe, T.; Schweinzer, P. (2013) Consuming your Way to Efficiency: Public Goods Provision through Non-Distortionary Tax Lotteries, CESifo Working Paper, No. 4228
2. Faravelli, M. (2011). The Important Thing Is Not (Always) Winning but Taking Part: Funding Public Goods with Contests, Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(1), pages 1-22, 02. 3. Franke, J.; Leininger, W. (2013) On the Efficient Provision of Public Goods by means of Lotteries , Ruhr Economic Papers 399 4. Herný plán pre Národnú bločkovú lotériu. TIPOS, národná lotériová spoločnosť, a.s. [online]. Available from: http://www.tipos.sk/Default.aspx?CatID=801 [Accessed 2014-05-28] 5. Morgan, J. (2000) Financing Public Goods by Means of Lotteries. The Review of Economic Studies 67 (4), 761–784. 6. Oakland, W. (2001) Theory of Public Goods, Handbook of Public Economics, Vol. 2 (9), Section 4. 7. Uniform Invoice Award Regulations. Taxation Administration, Ministry of Finance, R.O.C. [online]. |
| Preliminary scope of work |
| This thesis should (i) introduce basic issues in VAT tax evasion in retail, (ii) describe the lotteries in Taiwan and Slovakia, (iii) model public goods lottery, and (iv) gather evidence on the evolution of tax proceedings in the two countries. A crucial part is microeconomic modeling of the VAT receipt lottery as a charitable lottery. A charitable lottery sells a ticket that consist of a lottery ticket and a public good (namely, a tax proceeded to the government budget).
The model shall draw upon Morgan (2000) and successors. We can especially study the role of attitude to risk and whether the lottery prize should be fixed or variable. Key questions: 1. Why and how should sales tax lottery help to reduce VAT evasion? 2. Is model of a charitable lottery good approximation of VAT lottery in Slovakia or Taiwan? 3. Are consumers motivated enough to participate in the lottery and demand sales receipts? 4. Are firms motivated enough to issue sales receipts and pay whole amount of tax collected? Methodology: Microeconomic model of the VAT receipt lottery as a charitable lottery Microeconomic models of consumer´s and firm´s decision making Outline: 1. Introduction 2. Government´s problem 2.1. Taiwan as a source of inspiration 2.2. What government wants to achieve? (Ideal scenario) 3. Model of charitable lottery and its comparison with lotteries in Slovakia and Taiwan 4. Consumer´s point of view and decision making behaviour 5. Firm´s point of view and decision making behaviour 6. Conclusion |
| Preliminary scope of work in English |
| This thesis should (i) introduce basic issues in VAT tax evasion in retail, (ii) describe the lotteries in Taiwan and Slovakia, (iii) model public goods lottery, and (iv) gather evidence on the evolution of tax proceedings in the two countries. A crucial part is microeconomic modeling of the VAT receipt lottery as a charitable lottery. A charitable lottery sells a ticket that consist of a lottery ticket and a public good (namely, a tax proceeded to the government budget).
The model shall draw upon Morgan (2000) and successors. We can especially study the role of attitude to risk and whether the lottery prize should be fixed or variable. Key questions: 1. Why and how should sales tax lottery help to reduce VAT evasion? 2. Is model of a charitable lottery good approximation of VAT lottery in Slovakia or Taiwan? 3. Are consumers motivated enough to participate in the lottery and demand sales receipts? 4. Are firms motivated enough to issue sales receipts and pay whole amount of tax collected? Methodology: Microeconomic model of the VAT receipt lottery as a charitable lottery Microeconomic models of consumer´s and firm´s decision making Outline: 1. Introduction 2. Government's problem 2.1. Taiwan as a source of inspiration 2.2. What government wants to achieve? 3. Model of charitable lottery and its comparison with lotteries in Slovakia and Taiwan 4. Consumer's point of view and decision making behaviour 5. Firm's point of view and decision making behaviour 6. Conclusion |