SUSTAINABLE ECONOMIC DEVELOPMENT OF SLOVAKIA: FACTORS DETERMINING OPTIMAL TAS COLLECTION

Abstract

We based our research on existing functional organizational structures and systems of financial administration of Slovakia. We worked on the assumption that improvement of effectiveness of the system of optimal tax collection was necessary for sustainable development of Slovak socio-economic system as such. Based on the current trends analysis we assume that a forthcoming tax and customs administration reform would significantly increase the effectiveness of the system and as a result it would also lead to a more positive view of taxes as socially unpopular obligations. By this process, Slovakia aims at effective tax system, which can lead to increase in efficiency and higher competitiveness of our state among EU countries. Based on the survey in three Slovak regions and by factor analysis we want to analyze the structure of following social factors: collection of contributions and accessibility, competency of tax administration employees, electronization of tax administration, effectiveness of tax collection, labor costs, and administrative burden of tax administration. These are considered to be hidden reasons of mutually correlated variables. The aim is to explain and clarify the observed correlations. It can lead to improvement of the conditions of tax collection for taxpayers when they can use electronic form of their declarations of contributions and taxes (taxes, contributions: social security and health insurance) based on which the state can distribute via a unique identifier the funds to individual institutions. Reference to this paper should be made as follows: Dobrovic, J.; Koraus, A.; Dancisinova, L. 2016. Sustainable economic development of Slovakia: factors determining optimal tax collection, Journal of Security and Sustainability Issues 5(4): 533-544. DOI: http://dx.doi.org/10.9770/jssi.2016.5.4(8)