Optimal tax policy modelling in agribusiness enterprises

Abstract

Tax optimisation has received considerable attention recently both at the EU institutions and in the scientific research domain. Researchers (T. Piketty (2013), Mankinw, M. Weinzeirland D. Yagan (2009), L. Kaplow (2010), Gazda J., Kovač V. et al. (2016)and others have been dealing with tax management methods, assessing this process, analysing implementation of the optimal taxation theory in business enterprises, the effect of tax optimisation on measures assumed by the authorities and social welfare. Researchers have also noticed that the relevance of tax optimisation reaches its peak during economic downturn and crisis characterised by lower tax payment capacity of business and insufficient funds to cover state expenditure. Hence, the recent global economic crisis has been followed by very active discussions among researchers, policy makers and legal specialists. All three discussion parties agree that tax optimisation is a legitimate phenomenon, and a tax payer is entitled to choose the mode of business operation most favourable to him without exceeding the statutory limits. Tax payer’s decision to optimise taxes is tolerable as long as his operation model designed to save on the taxes does not cross the line of being ‘completely artificial’, non-compliant with the economic reality, and intended for the mere purpose of evading the taxes which would otherwise be applicable in a regular situation. This is where the issue of identification of the most business-appropriate tax optimisation policy model emerges. Consequently, the research problem raised in this paper is: which methods should be used by agribusiness enterprises to design the most appropriate tax optimisation policy?[...]