Capital Gains Tax Research Articles

다주택자 양도소득세 중과에 관한 규범적 검토 - 부동산 세금의 ‘제재’화에 관하여 –

이 글에서는 2018년 이래로 시행된 주택 양도소득세 강화에 관한 여러 입법 중 다주택자의 조정대상지역 내 주택 양도에 대하여 양도소득세를 중과하고 장기보유특별공제를 배제하는 것을 내용으로 하는 「소득세법」 제95조 제2항 및 제104조 제7항(이하 ‘다주택자 양도세 중과 조항’이라 한다)을 중심으로, 해당 조항의 법적 성질은 어떻게 되는지, 그리고 이를 헌법적 심사기준의 관점에서 어떻게 고려할 수 있는지를 생각해 본다. 1세대 2주택 이상의 자가 조정대상지역 내 주택을 양도 시 양도소득세를 중과하고 장기보유특별공제의 혜택을 배제하는 것을 내용으로 하는 다주택자 양도세 중과 조항은 제재적 조세의 일종이다. 그런데 2020년 7. 10. 부동산 정책을 반영하여 「소득세법」이 개정되면서 위 조항의 제재적 기능이 강화되었는데, 이는 무엇보다 세금을 다주택자에 대한 제재로 이용하려는 정부의 의도가 명백하게 표출된 경우라고 할 것이다. 다만, 다주택자 양도세 중과 조항은 그 형식이 일단 조세인 이상 그것이 헌법상 한계를 넘어서는지의 고려에 있어 세법상 심사기준의 적용을 받는 것을 피할 수 없다. 조세의 측면에서 비롯되는 한계의 심사기준으로는 조세법률주의, 조세평등주의를 고려해야 할 것이다. 한편으로 재산권 보장의 측면에서 과잉금지원칙을 적용하여, 다주택자 양도소득세 중과세로 인한 불이익이라는 제재방법이 정부가 추구하는 정책 목적과의 균형상 지나치게 과도하여 ‘과잉제재’로서 납세의무자의 재산권을 과도하게 제한하는 것은 아닌지를 심사할 필요가 있다. 조세법규의 규제목적과 수단이 과도하여 제재의 성격이 극명하게 드러나고, 담세력을 전제로 하는 조세 본래의 취지와 기능이 퇴색할 정도라면, 특정 납세의무자를 표적으로 삼아 ‘벌(罰)’로서 무거운 세부담을 주는 당해 법규는 조세·행정규범의 헌법적 한계를 벗어난 입법으로 그 합리성도 인정되기 어렵다. 그러한 의미에서 다주택자 양도세 중과 조항은 헌법에 어긋나는 주택정책 입법이라고 할 것이다.

Efficiency in trading markets with multi-dimensional signals

There is a continuum of agents, each of whom trades a divisible asset via demand function competition. Individual valuations are determined by payoff shocks that are correlated across agents. Agents observe multi-dimensional signals about the payoff shocks; it is only assumed that the signals are normally and symmetrically distributed. We give three results about this economy. First, an equilibrium exists. Second, the equilibrium is constrained inefficient; a higher total surplus could be attained if agents submitted different demands. Third, a constrained-efficient outcome can be implemented by setting an appropriate capital-gains tax. The second result identifies a new type of inefficiency that only arises when agents observe multi-dimensional signals; the third result identifies the taxation policy that allows correcting this inefficiency.

To Realize, or Not to Realize? Capital Gains Tax and Portfolio Choice

The central question addressed in this note is whether it is better to sell (and re-purchase) appreciated assets now and pay today's long-term capital gains tax rate, or wait to realize gains in the future and pay a likely higher capital gains tax rate. The authors argue that a framework based on maximizing expected risk-adjusted wealth should be the preferred method for answering some of the important questions arising from the interaction of taxes and investing. Investment theory holds that in a world of efficient markets, random walks and no taxes, horizon shouldn't materially affect many types of investment decisions. However, as soon as tax enters the picture, horizon in many situations becomes the single most important input an investor needs to think about. For investors with long horizons and moderate-size unrealized capital gains, it will usually make sense to defer realization even if the investor expects the tax rate to jump by 20 percentage points. Surprisingly, at intermediate time horizons, the optimal decision can be to realize some, but not all, of the unrealized gains. Investment horizon isn't the only critical input, and the interaction of all the relevant variables puts the development of a generic rule-of-thumb out of reach.

THE IMPOSITION OF TAX ON INHERITANCE IN INDONESIA

Indonesia has enjoyed high and stable economic growth during the last decade. However, the benefits of growth have not been shared equally. Wealth inequality is widening in recent years which gives a serious threat to sustainable growth. The taxation policy still faces challenges to support inequality-reducing programs. The limitation of Personal Income Tax to conduct redistribution role and the absence of capital gain tax in Indonesia are some of the challenges faced in the fiscal policy field. Inheritance is assumed to be one of the sources of wealth accumulation. To reduce the gap between the richest and the rest, it is time for Indonesia to impose an inheritance tax . This paper examines the suitable inheritance tax design for Indonesia taking into consideration of experiences from a few selected countries. Based on the analysis, Indonesia should have an estate tax model with basic exemption starts from IDR 14.5 billion (USD 1 Million).

The Capital Gains Tax- Boon or Bane: A Case of Kenya

This paper assesses the viability of the capital gains taxation in Kenya. Taxation being the only predictable source of government revenue to finance public spending and manage economy regarding economic development. The optimal tax model informs the government of the way to maximize the tax revenue enforcement and collection and promotion of the economic wellbeing. A tax introduced in the system should maximize revenue earning for the government as well as spur economic growth. The re-introduction of the capital gains tax in January 2015 on the capital assets and basing on the gains realized thereafter on the disposal of assets has proved to be productive and persuasive to economic growth. The robust real estate sector and high performing stock market through the Nairobi securities exchange (NSE) has widened the tax net and increased tax revenue collection for the government. It remains an ideal that maximizes revenue as well as promoting economic grow. Moreover, on regional integration perspective, the re-introduction of Capital Gains tax is seen as a step towards bridging the differences in fiscal and tax policies between the East African States by aligning Kenya to its neighboring countries that impose tax on capital gains. With ever increasing merits the capital gains tax should be enforced in our economy.

A Study on the Lock-in Effect of Capital Gains Taxation in Housing Markets

A Study on the Lock-in Effect of Capital Gains Taxation in Housing Markets

High-order Markov-switching portfolio selection with capital gain tax

The uncertainties of market state and returns of risky assets both affect the investors’ decisions significantly. It is necessary and prudent to consider the regime-switching mechanism of market states in portfolio selection. Different from the traditional first-order Markov-switching portfolio selection studies, we consider a high-order Markov transition process of market state, which can better depict the market state changes and incorporate more market information into portfolio selection due to the financial market has the long memory property. The capital gain tax is treated as the trading cost of which the tax rate not only depends on the holding periods of risky assets but also on the trading volume. In addition, the capital gain–loss offsetting is studied explicitly where the gain–loss offsetting in the same period and capital loss carry-over effect in different periods are considered simultaneously. A high-order Markov-switching portfolio selection model (HOMSPSM) is proposed. The Monte Carlo simulation is employed to approximate the expected values and variances of the complicated random returns, and the Monte Carlo simulation based particle swarm optimization algorithm (MCPSO) is designed to obtain the optimal investment strategy. Finally, simulated and practical numerical experiments are provided to verify the effectiveness and practicability of HOMSPSM and MCPSO.

The Study Trends of Capital Gain Tax for Stock and Their Effects on Stock Trading

The Study Trends of Capital Gain Tax for Stock and Their Effects on Stock Trading

Bridging the Map and the Territory: International Taxation Issues in Relation to Cryptocurrencies

The main motivation behind the creation of cryptocurrencies was to devise a way to take money out of the hands of the government. It only started to do so after 2009, with the creation of Bitcoin, which purported to be an alternative to money. Cryptocurrencies today are getting closer to fulfilling the economic functions of money, but have not yet reached that point. Nonetheless, international courts have started to recognise them as, at the very least, functional equivalents to money, especially when applying anti money laundering rules to frauds committed using cryptocurrencies. On the other hand, policy-makers refuse to recognise cryptocurrencies as money, as it the case of the taxation rules of the UK which recognise them as property, subject to cumbersome Capital Gains Tax calculations and reporting obligations upon disposal. This is not the only possible approach, with other jurisdictions taking more lenient approaches. The fact that the taxation of cryptocurrencies is not a coherent issue from an international standpoint can have negative consequences, such as jurisdiction arbitrage by users, and even some cryptoassets becoming the object of hybrid mismatches agreements such as those that are part of the BEPS project of the OECD. A solution to this issue would include taking care to properly characterise all cryptoassets so that their regulation is homogeneous at an international level, and making sure the actual tax regulation they are subject to respects, or at least considers, the objectives behind their creation. The use of deeming provisions is proposed to achieve the latter end.

Deepening Tax Compliance Culture in the Educational Institutions of a Private Character in Anambra State, Nigeria

Gap created by none definition of ‘educational institutions of public character’ in any of the Nigerian tax laws for the purpose of ascertaining income tax and capital gains tax has generated serious arguments and legal debates between the operators of educational institutions of a private character and the relevant tax authorities in Nigeria. Among the profits exempted from the tax payment as provided in section 23(1) (c) of the Companies Income Tax Act, 2007 (as amended) are the profits of any company engaged in educational activities of a public character in so far as such profits are not derived from a trade or business carried on by such company, and this is also contained in paragraph 13 of the third Schedule of Personal Income Tax Act, 2011 (as amended) and section 26(1) (a) of Capital Gains Tax Act, 2004 (as amended). These sections of the tax laws have been misconstrued by many operators of private schools in Nigeria to mean ‘all-inclusive’; thus, leading to low compliance in paying taxes by this circle. Consequently, it has led some persons and group of persons to demand for further insights and enlightenment on the relevant provisions of federally administered tax laws and tax administration as it concerns private schools in Nigeria. Against this backdrop, this paper attempts to deepen tax compliance culture in the privately owned educational institutions in Anambra State, Nigeria. It does this by examining certain tax concepts and laws, explaining the responsibilities of operators of private schools on tax matters and providing them with information on the requirements of the tax laws as they affect this group and for education of the public at large. This paper is organized to eradicate tax evasion, while minimizing tax avoidance and eliminate any form of multiple taxation occurring within this circle. It concludes that improvement in tax education of this stakeholder would likely optimize tax revenue collection and voluntary compliance culture. Among others, this paper recommends that FIRS should have more effective and efficient structure of taxpayers’ service department that would support in addressing the taxpayers’ grievance and regularly educate all the stakeholders in improving tax compliance culture.

An Assessment of the Extent of Contribution of Capital Gain Tax to Internally Generated Revenue Profile of Nasarawa State of Nigeria : 2015 - 2019

An Assessment of the Extent of Contribution of Capital Gain Tax to Internally Generated Revenue Profile of Nasarawa State of Nigeria : 2015 - 2019

Non-Oil Tax Revenue on Economic Growth and Development in Nigeria

Globally, government is experiencing difficulties in generating adequate revenue to finance their activities. In Nigeria, studies have shown that the recent sharp reduction in the revenue was as a result of decline in crude oil prices which inversely affected the financial ability of government towards growth and development of the nation. To this end, this paper therefore investigated the effect of non-oil taxes on economic growth and development of Nigeria. The study employed ex-post facto research design. Macro data for the period 1994Q1-2017Q4 representing seventy six (76) observations were obtained from CBN statistical bulletin and National Bureau of Statistics. The documents were already exposed to the scrutiny of the appropriate regulatory agencies. The data were analyzed using descriptive and inferential statistics employing multiple regressions. The study discovered that non-oil taxes (custom and excise duties, capital gain tax, company income tax, tertiary education tax and value added tax) have significant effect on economic growth. (Adj. R2 = 0.75, F(5,71) = 213.43, p< .0.05). The individual effects are also positive and statistically significant: (VAT- β = 8.011, t(76)= 2.802, ρ<0.05, CIT- β = 2.560, t(76)= 2.383, ρ<0.05, CED - β = 1.767, t(76)=3.092, ρ<0.05, CGT- β = 4.162, t(76)= 3.509, ρ<0.05, and TET- β = 0.161, t(76)= 2.443, ρ<0.05). This study concluded that non-oil taxes significantly influenced both economic growth and economic development in Nigeria. The study recommended that government must strive to sustain the current unflinching commitment towards improving non-oil tax revenue, ensure Tertiary Education Tax collected translates into real development and also ensure efficient utilization of tax payers’ money to boost non-oil tax revenue collection which will then lead to economic growth and development.

The Nigerian Tax Outlook; A Critical Analysis of the Finance Act, 2020.

The Finance Bill was passed into law in January 2019 as a fiscal support measure for the 2020 budget. The Bill is supposed to effect measures that would radically revamp the Nigerian economy as well as provide a fiscal means for offsetting the deficit in the 2020 budget as presented by the H.E President Muhammadu Buhari to the Senate. The Finance Act brought several developments to the Nigerian tax regime with the amendment of the various tax legislation in Nigeria. The Act amended the Companies Income Tax Act, Personal Income Tax Act, Value Added Tax Act, Capital Gains Tax Act and the Stamp Duties Act. One of the most populous innovations brought by the Act is the increase in the Value Added Tax rate from 5% to 7.5%. The Act provides for incentives especially for SMEs and companies in real estate investment, especially for CIS. The Act is a step in the right direction towards the decentralisation of the Nigerian economy which over the years has been tied to oil. In this paper, the author seeks to explore the innovations made by the Act and their precursors. The author thus wishes to enlighten his readers on what exactly the Finance Act is all about and how they can benefit from the goodies that came with it.

기업승계시 자본이득과세제도 도입방안 연구

기업승계시 자본이득과세제도 도입방안 연구

Fuzzy hidden Markov-switching portfolio selection with capital gain tax

A fuzzy portfolio selection model is considered with a view to incorporating ambiguity about model and data structure. The model features the uncertainty about the exit time of each risky asset within a pre-specified investment horizon and also the presence of transaction costs. However, departing from the traditional paradigm where the transaction costs are often assumed to be unrelated to holding periods, we introduce the capital gain tax of which the realized tax rate is decreasing with respect to the holding periods with a view to encouraging the long-term investment. Meanwhile, the regime switching property of the market state is introduced to fuzzy portfolio selection, where fuzzy random variables are employed to model uncertain returns of risky assets in a Markov-regime switching market. An adjusted L−R fuzzy number is introduced and some of its mathematical properties are studied. In addition, a bi-objective mean-variance model is formulated, and a time varying numerical integral-based particle swarm optimization algorithm (TVNIPSO) is designed to obtain the efficient frontier of the portfolio in the sense of Pareto dominance. Finally, some numerical experiments are provided to validate the effectiveness of the model and the TVNIPSO.

The interesting story of participatory notes in India

The term 'participatory notes' (P-Notes) was not very familiar to everyone in our country until recent past. P-Notes are tools used for making investments in the stock markets. They are used outside India for construction tools in shares listed in the Indian stock market. That is why they are also called offshore derivative instruments. In the last one decade (since July 2004) when tax arbitrage via capital gain tax was almost disappeared, the demand of P-Notes has actually increased. Investment through P-Notes formed an important source of foreign portfolio investors (FPIs) to Indian stock market during the last two decades. Due to their opaque structure, they have been on regulatory radar and subject to stringent regulations to check misuse of funds. The present study attempts to examine extensively the journey of P-Notes in emerging stock market like India. It has also been attempted to critically examine the market watchdog regulatory regime to tighten the noose on P-Notes.

Tax Induced Divestments and Mobility - Insights from a Kink in Capital Gains Tax Rates

Tax Induced Divestments and Mobility - Insights from a Kink in Capital Gains Tax Rates

How Do Taxes Affect the Trading Behavior of Private Investors? Evidence From Individual Portfolio Data

How do taxes affect the investment behavior of private stock-market investors? We exploit a large reform of capital-gains taxation in Germany combined with confidential portfolio-level daily panel data to study the causal effect of capital-gains taxes on individual stock-trading behavior and the disposition effect. We find substantial spikes in selling probabilities around an intertemporal tax discontinuity, and no such spikes after the abolishment of the discontinuity. Using difference-in-bunching methods and non-parametric regressions, we quantify the tax effect and identify interesting patterns of heterogeneity. Asset holding periods exhibit a tax elasticity of 0.368 for gains and -0.435 for losses. Because the theoretical tax effect on trading behavior runs in opposite direction to the well-established disposition effect, we further study the interaction between taxes and the disposition effect. We find evidence that the disposition effect is strongly affected by the tax discontinuity through tax motivated selling of both gains and losses.

How do Taxes Affect the Trading Behavior of Private Investors? Evidence from Individual Portfolio Data

We exploit a large reform of capital-gains taxation in Germany combined with portfolio-level daily panel data to study the causal effect of taxes on individual stock-trading behavior and the disposition effect. We find substantial spikes in selling probabilities around an intertemporal tax discontinuity, and no such spikes after the abolishment of the discontinuity. Using difference-in-bunching methods, non-parametric regressions and effective tax rates, we quantify the tax effect and identify interesting patterns of heterogeneity. We further find evidence that the well-established disposition effect is strongly affected by the tax discontinuity through tax motivated selling of both gains and losses.

Attention and Biases: Evidence from Tax-Inattentive Investors

We first provide evidence of investor inattention to a very simple and well-known capital-gains tax exemption in the Brazilian stock market. We then show that tax-inattentive investors exhibit stronger behavioral biases and worse trading performance, even after controlling for several investor-level characteristics. The evidence is consistent with inattention being a common source of behavioral biases.