Abstract:

There is a risk of expenditures recorded by taxpayers, either at the level of their entire budget or at each category of a specific expenditure. This risk manifests itself in a seemingly simple way. An expenditure affected by risk may be realized in part or not at all, in which case the taxpayer will waive this category of expenditure. How can a taxpayer minimize his overall risk recorded at the level of his budget? What is the weight that different categories of expenditure need to have in the total income of the taxpayer so that the risk can be minimal? These are questions to which answers were identified by developing a model to minimize the overall risk registered at the taxpayer’s budget.