Principles and Rules for Determining the Tax Capacity of Entrepreneurs in Income Taxes

The purpose of this paper is a multifaceted theoretical and legal analysis the issue determining tax capacity entrepreneurs in income taxes so as to be able assess adequacy rules area for proper implementation concept. research hypothesis assumes that these currently force, large extent, do not ensure concept capacity, especially conditions digitalized globalized economy, but also times progressive development instruments counteract only evasion avoidance. Therefore, it necessary change them many aspects. was carried out using dogmatic comparative method, taking into account particular provisions domestic, foreign EU laws, body domestic law literature, court rulings proposals new solutions put forward on international forum. took essence closely related principles, well functions taxes, both national context. results formulation some conclusions desirable guidelines measuring which should fundamental principles equity neutrality taxation. Currently, are violated national, aspects, i.a. by deviating from criteria an indicator capacity. In context very important distinction made between situations where abandoning determination justified pursuit fair distribution burden (as, e.g., case so-called digital tax) when desire achieve certain non-fiscal goals. such case, any variation those must assessed case-by-case basis whether justified. On other hand, former even temporarily – aspect until worked out, may indispensable differentiate (e.g. criterion favor revenue precisely order neutral context, worth noting problems underlying different approaches solved comprehensive reform entrepreneurs, developed internationally within OECD BEFIT. It underestimated projects categories concepts balance sheet law, including proposed adoption adjusted financial result purposes result. Taking view increasing general norms aimed at minimizing phenomena avoidance optimization, seems considering possibility determined its natural measure, i.e. their business activity.