VAT Control Statement as a Solution to Tax Evasion in the Czech Republic

The paper discusses the issue of the value added tax control statement. The aim is to assess, based on an analysis of available information, this tax fraud control instrument and predict possible impact on tax entities belonging to the category of small and medium enterprises (SME), as well as effects on the revenue part of the national budget. Our results show that while this measure brings benefits to the tax authority, fairly-dealing entities experience burden, particularly because of sanctions. In relation to fraudsters the instrument is not likely to improve tax collection.