TAX CHANGES AND THEIR IMPACT ON MANAGERIAL DECISION MAKING

This study analyses tax changes implemented in the tax system of Slovak republic, and then it looks into the processes of managerial decision making that aims to eliminate possible impact of these changes on the companies' business results. The main goal of the study is to determine to what extent managerial decisions impact whether or not government's expectations for the tax changes are fulfilled, i.e. to determine whether or not these permanent tax changes bring intended results. In order to achieve this goal we have analyzed information about specific managerial decisions and measures that were adopted as a reaction to the changes concerning companies' tax burden. Results of this analysis indicate that managerial decisions adopted as a result of permanent changes in tax system predominantly aim to find a way how to avoid taxation and thus eliminate the impact of these changes on companies' economic results. That means that the management does not behave according to the expectations of state and society, and that adopted managerial decisions do not follow or fulfill the intended purpose of implemented tax changes. Considering the complexity of this issue this study attempts to offer only a few possible motives and explanations for such a behavior from the side of the management. Complete and adequate reasoning and understanding of this problem could be the task for further analysis.