Český finanční a účetní časopis 2016(3):89-104 | DOI: 10.18267/j.cfuc.482

Simple accounting versus tax records

Iris Šimíková

Iris Šimíková; katedra financí a účetnictví, Obchodně podnikatelská fakulta v Karviné, Slezská univerzita v Opavě, Univerzitní náměstí 1934/3, 733 40 Karviná; <simikova@opf.slu.cz>.

The aim of the contribution is to identify and characterize the requirements for keeping information databases of simple accounting and tax records in 2016. The analysis and comparison methods made it possible to formulate the findings and conclusions. Both databases have gone through the stages of development, stagnation and reduction since they were introduced into the Czech legislation. Simple accounting was initially a part of the national accounting system. Its abolition from 2004 onwards was one of the consequences of the accession of the Czech Republic to the European Union. By being restored in 2016, simple accounting did not return to the position of an accounting system. It is intended for an accounting entity which is not VAT registered, whose total income does not exceed CZK 3 million, the value of its assets does not exceed CZK 3 million, and it must be one of the enumerated non-profit organizations. Tax records became a part of the Czech legislation in 2004, when they replaced simple accounting for natural persons. Tax records are intended only for natural person entrepreneurs, who are not accounting entities. For small non-profit organizations, an information database was created, not a fully-fledged accounting system, as the name might suggest. The newly arranged structure of accounting decreases its reliability since it is missing complex information. If simple accounting is to be retained, it is necessary to add duties, so that it is unequivocally differentiated from tax records.

Keywords: Simple accounting; Tax Records; Non-profit organization; Natural person; Accounting entity.

JEL classification: M41, M48

Published: October 1, 2016  Show citation