Financial Law Review <p>"Financial Law Review" is a scientific journal devoted to the issues of public finances and financial law. The inspiration for the establishment of FLR is innovation processes taking place within the public and private financial sector. Dynamics of changes in the sector is attracting new researchers in the field of legal and economic sciences and the growing importance of this issue for the economic and social system increases the number of people interested in broadening their knowledge in this area. In such circumstances, we got best reasons for the establishment of a scientific journal, which will be following new trends and picking up new research challenges. The mission of the journal is to provide a forum for exchange of knowledge and ideas within the scientific community and to popularize publications among the representatives of finance, business and politics. The main idea is to provide a bridge between science and practice that allows two-way flow of inspirations and ideas and together to solve the complex problems of the modern world of finance.</p> University of Gdańsk - Centre for Local Government Law and Local Finance Law of the University of Gdańsk en-US Financial Law Review 2299-6834 Taxation of Robots and AI – Problem of Definition <p>The article deals with definition problem of artificial intelligence (AI) and robots for tax purposes (also called as “definition problem of artificial intelligence/robots”). In the paper authors deal with three main methods for definition of technological objects for legislative purposes. Besides that, the article also analyses definition of AI that was introduced by European Union in new proposal for artificial intelligence regulation. Finally, the paper proposes new tax nomenclature for robots as a possible solution to the definition problem of artificial intelligence/robots and defines the basic variations of possible taxation of artificial intelligence/robots.</p> Adrián Popovič Jozef Sábo Copyright (c) 2022 2022-03-31 2022-03-31 25(1) 1 16 Analysis of Economic Tools of Environmental Law Which May Influence the Conservation of Insects <p>Environmental law offers many tools to take care of the surrounding landscape and life in it. These include economic tools, from which the paper selects those that can have a positive impact on mitigating the current decline of the insect kingdom. Specific attention is then paid to financial means of supporting beekeepers and thus the conservation of bees, given that they are considered to be the most significant among pollinators.</p> Nikola Mrkývková Copyright (c) 2022 2022-03-31 2022-03-31 25(1) 17 32 Comparative Legal Analysis of Budget Grant Funding of Science in the European Union and the Russian Federation <p>In this article, the author examines the most significant characteristics of a such method of budgetary funding for research in the European Union and Russian Federation as grant funding. Grants are actively used for these purposes in many countries. Grant funding is especially popular in the European Union. The analysis of research grants in Russia and the EU shows that the legal regulation and the grant process in mentioned public entities are very similar, but there are differences. The author focuses her attention on highlighting the advantages of grant funding of science in the EU and Russia to exchange of experience. The author uses the following scientific methods: collection of information on grant funding in the European Union and the Russian Federation, comparative analysis of legislation, observation, formulation of conclusions.</p> Elena Andreeva Copyright (c) 2022 2022-03-31 2022-03-31 25(1) 33 50 Initiation of Proceedings in a Case of Tax Offense as a Premise for Suspending the Limitation Period for a Tax Liability in Polish Law <p>The subject of the article is to discuss the premise for the suspension of the limitation period for a tax liability, concerning the initiation of proceedings in the case of a tax offense, about which the taxpayer has been notified, if the suspicion of committing a crime or offense is related to failure to fulfill this tax liability. The authors analyzed the latest jurisprudence of administrative courts, judgments of the Constitutional Tribunal, and scientific literature devoted to the indicated topic. Attention was drawn to practical problems with applying the provisions of the Tax Ordinance, including those related to providing taxpayers with constitutional guarantees, such as respecting the principle of trust in the state and the law. Doubts related to the instrumental use of the law when instituting penal fiscal proceedings by tax authorities, aimed solely at suspending the limitation period, as well as the issue of implementing the institution of fiscal penal law into tax regulations, were discussed. The article ends with conclusions and an attempt to evaluate the current legal regulations in the light of the resolution of the Supreme Administrative Court of May 24, 2021, file ref. act I FPS 1/21.</p> Tomasz Gwóźdź Dominik Kołodziej Copyright (c) 2022 2022-03-31 2022-03-31 25(1) 51 67 Impacts of the 5th AML Directive on the Provision of Investment Services in Czech Republic <p>This contribution deals with the impact of the Vth AML directive, which updated Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, on the provision of the investment services in Czech Republic. The main aim of the contribution is to confirm or disprove the hypothesis that the Vth AML Directive significantly affected the activities of investment service providers. The author used scientific methods, especially induction and deduction, to confirm or disprove the above hypothesis. The paper also discusses the future regulation of the anti-money laundering area.&nbsp;</p> Zuzana Šiková Copyright (c) 2022 2022-03-31 2022-03-31 25(1) 68 92 EU Proposal on Digital Service Tax in View of EU State Aid Law <p>This contribution deals with the European Commission’s proposal on the taxation of digital services. The main aim of the contribution is to confirm or disprove the hypothesis that the Digital Service Tax constructed in line with the proposition of the European Commission does interfere with EU state aid law. The research is conducted by applying basic methods of legal science, especially the method of scientific analysis and case law analysis.</p> Mateusz Kaźmierczak Copyright (c) 2022 2022-03-31 2022-03-31 25(1) 93 109 Transfer Pricing as an Institution Supporting the Anti-Optimization Clause in Counteracting Tax Avoidance <p>The purpose of this study is to show the relationship between transfer pricing regulations and the anti-tax avoidance clause. The paper discusses the axiology of legal regulations aimed at counteracting tax avoidance practices and the use of non-market prices in relations between related entities. An attempt was made to present the concept of the phenomenon of harmful tax competition, also the essence of tax avoidance, and to contrast this concept with the phenomenon of tax evasion. The phenomenon of tax optimization was also indicated. The relationship between the provisions of the general anti-optimization clause and transfer prices that determine the appropriate state of prices between related entities within the meaning of tax law was also subjected to a detailed analysis.</p> Tomasz Wach Copyright (c) 2022 2022-03-31 2022-03-31 25(1) 110 125 Statutory Justifications of Torts in the Public Finance Discipline Introduced by the Provisions of Anti-Criris Shield – Analysis and De Lega Ferenda Postulates <p>The statutory concept of justification in public finance discipline comes down to clear exclusion of unlawfulness of discipline’s tort. It is assumed that the reason for the existence of justification of torts is a collision of interests and resulting from it, the necessity to indicate the interest excluding unlawfulness, and later waiving liability for breaching law. Justification behavior refers to actions which in typical situations are incorrect and unwanted, but because of special circumstances may constitute justification and hence need to be tolerated, accepted or even approved in the legal order. Regulations shaping the new premises excluding liability for breaching public finance discipline in connection with COVID-19 are included in legal regulations included in so called Anti-Crisis Shield. The aim of the study is to analyze the established legal solutions and to formulate de lege ferenda postulates.</p> Ewaryst Kowalczyk Copyright (c) 2022 2022-03-31 2022-03-31 25(1) 126 145 A Novel Digital Service Taxation & Sustainability Legal Framework Utilizing Artificial Intelligence Analysis of Subsea Cable Data Transmissions <p>The digital economy has led to massive changes in the economy and international trading, where user data have become the cornerstone of new business models. Digital services have become transformational and led to significant revenue generation for these corporations. However, there is a growing perception amongst individuals and governments that these digital services are not taxed fairly, given the ability of companies to shift profits between different countries. Digital service taxes have recently become very attractive and implemented in a variety of countries, but significant challenges remain. Artificial intelligence has become an attractive way of determining patterns across data and has been increasingly utilized in legal environments. I will outline a new legal framework for the integration of artificial intelligence for the determination of digital service taxes and outline the integration of subsea cable communication data into the framework. Furthermore, I will address the legal environmental challenges, specifically related to the South China Sea, and how cost associated with can be incorporated into the digital service tax environment.</p> Klemens Katterbauer Copyright (c) 2022 2022-03-31 2022-03-31 25(1) 146 157 Impact of Globalization on Financial Development in Nigeria <p>This study examines the impact of globalization on Nigerian financial development with particular reference to foreign direct investment, trade openness, exchange rate, government expenditure, interest rate and inflation. The statistical data used for the study were obtained from Central Bank of Nigeria publications and [Statistical Bulletin 2020] and [World Development Indicators 2020]. The study employed the autoregressive distributed lag (ARDL) model. Major findings from the study show that foreign direct investment, trade openness and government expenditure have a positive and significant impact on financial development in Nigeria while exchange rate, interest rate and inflation rate have a negative significant impact on Nigerian financial development. It is recommended that Nigeria must face the challenges of globalization. For a country to belong to the race, major changes and restructuring are imperative, hence, Nigeria must develop the internal structure and the will to adopt those policies that brought about the benefits from globalization.</p> John Ayodele Ajayi Kyalo Stephen Musyimi Copyright (c) 2022 2022-03-31 2022-03-31 25(1) 158 178 Anatocism in the Czech Tax Law <p>The paper examines legal disputes regarding the possibility of taking interest of interest (anatocism) payed by the tax administrators in the Czech legal order. The aim of this paper is to assess the outcome of the above-mentioned disputes and to determine whether the current legislation still allows taking interest on interest in tax law. Author draws conclusions mainly from case law of the Czech Supreme Administrative Court and uses analysis, synthesis and descriptive method.</p> Michael Feldek Copyright (c) 2022 2022-03-31 2022-03-31 25(1) 179 186 Modified Area-based System in Czech Republic <p>Tax system in the Czech Republic and offers some specific suggestions for reform. In the long term, their taxation could be maintained. Many politicians not only in the Czech Republic believe that a higher property tax on real estate investments can solve the housing crisis. There are several examples showing that such a solution does not lead to the desired result. In many states, such a tax increase solved a certain "housing crisis". Such a solution is at all sensible and will ultimately not only disadvantage economically the socially weaker, who do not have the resources to get their own place. On the other hand, the overall taxation of investment housing could contribute to increasing revenues of municipal budgets without changing the budgetary allocation of taxes. The inclusion of elements of elementary equality and work with so-called local coefficients, possibly combined with the categorisation of immovable property as established in the Land Registry, appears to be a meaningful key to the solution. On the basis of these two groups or categories, differential taxation can be achieved for a wide range of properties without creating room for discussion about what is and is not an investment apartment [OECD 2010]. But there are two weaknesses in dealing with this, namely policy changes, where the increase in the coefficient is unpopular within local authorities, and that it will be quite different in this area. The area-based property tax has been gaining influence in developing and transitional countries around the world. This report first examines how the area-based tax is administered in thirty-eight countries according to statutes. Area-based assessment is more commonly used in rural areas than urban areas, for land than buildings, and with few adjustments. Over half the countries allow some local control [Fischel 2001: 17].<br>The paper presents an overview of the theoretical and practical experience of both the immovable property taxation forms (area-based and value-based) concerning the different aspects of micro and macroefficiency, equity and the “ability to pay” aspects as well as the fiscal and technical aspects, with the special emphasis on (post)transition economies – new EU members. The EU recommendations in this area, especially concerning the shift of tax burden from (labour) income to property, are pointed out. The comparative analysis of relevant taxation in the EU member countries is presented, pointing out that some of them, which have fulfilled the formal requirement of the recurrent taxes on immovable property introduction, still implement a simpler form – the area-based one.<br>In particular, the article focuses on the definition of the tax system in the Czech Republic, and intentionally on the processing of property taxes. Inheritance, gift and acquisition taxes on immovable property, including their definition and the way in which they are transformed, are mentioned in particular in these property taxes. However, the main objective of the work was to approximate the property tax, in relation to value-based taxation or a modified area-based system. Attention is also focused on defining the pluses and minuses of these taxes, what advantages they are, what advantages they are not, and which of the countries uses which system of taxation. The work seeks to highlight why a system is used within the Czech Republic, including its benefits within the tax system.</p> Sandra Papavasilevská Copyright (c) 2022 2022-03-31 2022-03-31 25(1) 197 206