Impact of illegal practices of employers on contributions of employee and employer

  • Michael Burian Mendel University in Brno
  • Jana Vrtalová Mendel University in Brno
Keywords: Tax on income from employment and functional benefits, Social security premiums, Premiums for health insurance, Tax evasion, Tax credit for a dependent child


This article deals with the evasion of income tax payable from employment and functional benefits. Within this framework, the impact of this in practice is quantified looking at the commonly used methods of tax revenues reduction (by concealment of income and paid tax returns, and increased claims for the advantage of children), and on the exhaustion of social insurance, premiums for health insurance and tax obligations. This effect is studied in a variety of examples based on data obtained from real taxpayers. The impacts of the practices used are evaluated for all interested parties, i.e. from the perspective of employees, employers and the state.