THE IMPACT OF BUSINESS ENTITIES' FINANCIAL PERFORMANCE ON PUBLIC REVENUES
DOI:
https://doi.org/10.18623/rvd.v23.n4.5073Keywords:
Public Revenues, Corporate Income Tax, Revenues, Profit and Loss Statement, Profit before Tax, Profit After TaxAbstract
The main objective of business activity is to generate profit, and this aspect significantly influences a company’s tax liability. Among other responsibilities, a business entity is also obliged to maintain accurate accounting records, which serve as the basis for calculating corporate income tax. In the Slovak Republic, accounting results are presented in the financial statements. These consist of the balance sheet, the profit and loss statement, and the notes, all of which are publicly accessible online in the Register of Financial Statements. Additionally, the financial statements are a mandatory attachment to the corporate income tax return. The aim of the article is to highlight the relationship between companies' financial performance and its impact on the state's tax revenues. For illustration, authors provide an analysis of the profit and loss statement of a specific heavy industry entity, along with a comparison of data for the accounting periods from 2020 to 2023.
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