Journal of Tourism and Services - Vysoká škola obchodní v Praze

We tested significance of relationships between businesses’ perception
of certain tax system`s aspects (administrative severity, total tax rate and
clarity of tax calculations) and businesses` understanding of tax reform.
In the tax reform applied in 2004 were implemented changes clarifying
the administrative processes (constant marginal tax rate applied on
individual and corporate income tax as well as on Value Added Tax). On
the other hand this measure expose to the change of catering and
hospitality services` VAT rate, which has become on the standard level
instead of reduced.
Based on results of used statistical methods we are not able to prove
that understanding of tax reform influences the fact how businesses
perceive the tax system`s administrative severity On the other hand,
business understanding flat tax positive are more likely to evaluate the
clarity of tax calculation to be high (Table 5).
Table 5
Significance of relationship between tax system’s aspects perception and flat
tax understanding
Criterion of tax system Strengths of association (Cramer`s V)
Administrative severity -
Total tax rate 0,171
Clarity of tax calculation 0,188
Source: Own proceedings based on filed survey, 2011.
The Strength of association between total tax rate`s perception and flat
tax understanding is low. Based on the method of medium values`
comparison businesses` negative understanding of flat tax is related to
negative perception of the total tax rate. It means that businesses
understanding flat tax negative are more likely to evaluate the total tax
rate to be high. It might be caused by changes of VAT rate`s category
(catering and hospitality services were after 2004 imposed by standard
rate instead of reduced) which has the tax reform applied.
4. Conclusion
The tourism development has slowed down during critical years of
economic crisis. We can observe significant fall of more economic activity’s
indicators. Catering and hospitality businesses are providing basic
tourism services. Those consider to be the main reason of their doing
business stagnation the decreasing demand (number of visitors, tourist).
Entrepreneurs expect government`s measures which would affect their
competitiveness in positive way. Those measures should be aimed on
improving of business conditions. Tax issues are frequently discussed in
this context. The majority of catering and hospitality businesses perceive
taxes to be the business environment burden. Businesses consider the
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