• Title/Summary/Keyword: Tax Planning

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A Study on Economic Utility of Tax Support System of Commercial Lessors for Preventing the Side Effects of Gentrification - Focused on Seongsu-dong Urban Regeneration Area - (젠트리피케이션 부작용 방지를 위한 상가임대인 조세지원 제도의 경제적 효용에 관한 연구 - 성수동 도시재생활성화지역을 중심으로 -)

  • Lee, Ha-Yeon;Lee, Ji-Hyeon;Nam, Jin
    • Journal of Korea Planning Association
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    • v.53 no.6
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    • pp.61-85
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    • 2018
  • The purpose of this study is to provide a logical basis for guarantee the effectiveness of the tax support system, which is one of the main measures to prevent the side effects of commercial gentrification. For this purpose, this study analyzes the combination of tax support to replace the loss of net rental income due to stabilize commercial rents and annual rent increase rate that can be substituted through the tax support system based on economic utility of commercial lessors in Seoung-dong, Seoul. The result of this study shows that the tax support system can be used as an effective means to substitute a considerable portion of the net rental income loss due to stabilize commercial rents of Seongsu-dong. However if the rent price continues to rise every year, the tax support system does not work. In order to guarantee the sustainability of the tax support system, annual rent increase rate should be kept below a certain level.

Costs Stemming from Tax Systems: Tax Compliance Costs

  • Mehmet, NAR
    • The Journal of Asian Finance, Economics and Business
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    • v.10 no.2
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    • pp.267-280
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    • 2023
  • The relationship between the state and taxation starts from the establishment of the state. The most important element is the concept of "tax compliance". Tax compliance can be considered as the harmony of state-society relations. However, the concept of tax non-compliance occurs when taxpayers do not fulfill their tax-related tasks as required. Tax noncompliance is just one of the costs that occur in tax systems, and is named "tax compliance cost" in the literature. This study focuses on tax compliance costs because tax compliance costs are the ones taxpayers are personally obliged to deal with. For this purpose, the study investigates costs accruing from tax systems, including efficiency, planning, application, and compliance costs. According to the analysis results, it was concluded that the main reason for fraud in the tax systems is high compliance costs and that tax compliance directly impacts social wealth. Besides, the existence of conditions conducive to tax evasion and tax avoidance in a country, short-term tax policies, belief in the unfairness and inequality of tax systems, inadequacy of audits conducted by tax authorities, insufficiency of pressure and deterrence mechanisms, constantly changing legislation, and the attitudes and perceptions regarding the illegitimacy of the government determine tax compliance.

The Effect of Tax Planning on Firm Value: A Case Study in Vietnam

  • VU, Thu Anh Thi;LE, Vinh Hoang
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.2
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    • pp.973-979
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    • 2021
  • The purpose of this paper is to examine the effect of tax planning on firm value of the non-financial firms listed in Vietnam, moderated by the state ownership. In this paper, effective tax rate is used to measure the tax planning; the state ownership is measured by the percentage of state equity holdings, and the firm value is measured by Tobin's Q. The data research is collected from audited financial statements and other statistical documents of 513 firms in the period of 2015-2019, provided by The FiinGroup (Vietnam). According to that, this paper uses quantitative research methods for the panel data. Regression analysis with GLS shows that the tax planning has a negative effect on firm value. In more detail, the association is not a variable in its direction when state ownership takes the role of a moderator. That means, in the perspective of principal-principal conflict, government should improve institutional environment to prevent firms form breaking the rules, especially accounting standards and principles. Assets allocation in tangible assets or making use of large size advantage should be taken into account. In the long run, firms should concentrate on the deployment of resources and the experience of knowledgeable practitioners to produce effective results.

Tax Planning, Financial Constraints and Investment Management: Empirical Evidence from Pakistan

  • BUTT, Muhammad Naveed;MALIK, Qaisar Ali;WAHEED, Abdul;TABASSUM, Aftab Hussain
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.12
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    • pp.129-139
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    • 2021
  • The aim of this study is to provide insight into tax avoidance through planning and management, and its investment consequences in financially constrained and unconstrained firms, as well as to empirically examine the interrelationships between the variables studied. Data was extracted from the financial statement analysis of non-financial companies listed on the Pakistan stock exchange (PSX) published by the State Bank of Pakistan, covering ten major manufacturing sectors. KZ index and WW index are used to identify financially constrained and unconstrained firms. Tax avoidance is measured by using GETR and LETR. All the equations are estimated through panel data regression models using common, fixed, and random effects. The empirical investigation of the role of tax avoidance in all firms collectively and constrained and unconstrained firms separately showed that the tax avoidance behavior of these firms is translated into investments by these firms. The study will help policymakers in strategy formulation and implementation related to tax planning and investment decisions in constrained and unconstrained firms to overcome their financial constraints and to optimize their investment decisions for value maximization. This will substantially increase the investment in the country by providing growth opportunities and lowering the tax rates.

Determinants of Tax Aggressiveness: Empirical Evidence from Malaysia

  • JAFFAR, Rosmaria;DERASHID, Chek;TAHA, Roshaiza
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.5
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    • pp.179-188
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    • 2021
  • The purpose of this study is to examine the level of aggressive tax planning (ATP) among companies listed in the Access, Certainty, Efficiency (ACE) Market of Bursa Malaysia. On top of that, this study also investigates the relationship between company characteristics, ethnicity, and ATP. This study uses a balanced pooled sample of 105 firm years-observations for the period from 2014 to 2018. These samples were selected to provide new insight into this market and to explore the attitude of small firms toward ATP in Malaysia. The data was retrieved from DataStream and the downloaded annual reports. The finding shows that profitability and financial distress have a significant relationship with ATP. Other variables including size, capital intensity, inventory intensity, leverage, and ethnicity, were not determinants of ATP. The result in this study may assist the reader in understanding the nature of companies in the ACE market, particularly on its behavior toward tax planning. A strict requirement is needed to be adopted in the sample selection process, thus limiting the sample size. Further, since the previous study focused on large companies, the discussion of this paper will provide new insight into the nature of tax planning within the small- and medium-sized companies in Malaysia.

Developing and Fostering Public Benefit of Not-For-Profit Medical Institutions in Korea through Tax Benefits (면세혜택을 통한 한국형 비영리법인 의료기관의 공익성 발전 방안)

  • Kim, Hyun-Myung;Oh, Hyun-Jong;Kim, Yang-Kyun
    • Korea Journal of Hospital Management
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    • v.23 no.3
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    • pp.1-15
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    • 2018
  • Purpose: This study is conducted to identify the impacts of tax exemption on community benefit, policy, human resource management, and public benefit. Based on the results of analysis, we explore several avenues to raise public benefit that is central to the value of existence of non-for-profit hospitals in Korea. Methodology: Survey was formulated referring to the US IRS tax exemption criteria, Form990/Schedule H, and Korean public hospital criteria. A total of 182 survey responses were collected and used to verify measurement validity and perform reliability analysis, confirmatory factor analysis, and path analysis. Findings: The result of this study showed positive relationships among; i) tax development and planning, ii) planning and human resource management, iii) human resource management and policy, iv) policy and community benefit, v) community benefit and public benefit. Practical Conclusion: Tax exemption affects community benefit and public benefit directly as well as indirectly. This implies that expanding tax exemption is likely to improve public benefit mediating community benefit.

Does Tax Really Matter in Planning the Dongbu Group's Spin-Offs? (세무계획측면에서 분석한 동부그룹 물적분할)

  • Jun, Byung Wook;Cho, Hyeong Tae
    • The Journal of Small Business Innovation
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    • v.20 no.1
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    • pp.1-18
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    • 2017
  • This study examined whether divided and spun-off companies design and execute spin-offs to minimize tax burdens by analyzing multiple spin-off transactions in the Dongbu Group, when the Korean tax law regarding corporate restructuring was amended in July 2010. Before the July 2010 tax amendment, taxes on the capital gains arising from the qualifying spin-off were deferred to the earlier of the shares in or assets acquired by the spun-off company are disposed. This tax treatment relieves the divided company's tax burden by deferring taxes on capital gains, compared with non-qualifying spin-offs. However, if shares in or assets acquired by the spun-off company are disposed after the July 2010 tax amendment, the capital gain incurred at the time of the qualifying spin-off would be taxed again at the spun-off company, in addition to a taxation on the divided company's capital gains. This creates double taxation implications for the parties involved in the spin-off. As a result, the double taxation may outweigh the benefit from the tax deferral on the qualifying spin-off, which may make a qualifying spin-off tax unfavorable. Among the four spin-off cases in the Dongbu Group addressed in this study, a spin-off occurred before the tax amendment, whereas three spin-offs occurred after the tax amendment. Initially, we expected that the spin-off before the tax amendment would be a qualifying spin-off, and the other three spin-offs would be non-qualifying spin-offs, considering the taxation rules before and after the July 2010 tax amendment. However, based on the review of summarized balance sheets disclosed in the spin-offs' corporate filings, no capital gains arose during the four spin-offs that occurred in the Dongbu Group. Therefore, we concluded that the Dongbu Group considered non-tax factors more than tax factors while designing and executing the spin-offs. The local media posited during this period that these spin-offs may intend to resolve financial issues in the Dongbu Group, and this analysis was supported by the fact that some shares in the new spun-off companies were sold by the Dongbu Group. Our case studies provide evidence that all costs, including both tax and non-tax costs, must be considered in the course of spin-offs, in addition to the tax burdens on all parties involved in the corporate restructuring, which parallels the work of Scholes et al. (2008). This study provides implications that various aspects should be considered and reviewed in advance when the management makes decisions for effective tax planning.

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Tax Planning For Physician Under Base Expense System (기준경비율 제도 하에서 의원의 세무계획)

  • 오동일
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.4 no.2
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    • pp.102-107
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    • 2003
  • A new base expense .system is implemented to substitute the standard income ratio system which has been used for more than 50 years. A base expense system requires a rigorous documentary evidences of important expenses such as purchase cost, labour cost, or rent. In order to make a successful tax savings, it is necessary to know the critical factors affecting tax payment in a base expense system. In this article, operating mechanisms of the base expense system and tax strategy under this system are introduced. If base expense system is successfully implemented, it will contributes considerably to progress in inducing tax compliance of non book keeping professionals who earn relatively high income in Korea.

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Change of the Old City by the Modernization

  • Nakagawa, Osamu
    • Journal of East-Asian Urban History
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    • v.1
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    • pp.25-54
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    • 2019
  • Kyoto, which was Japan's political and cultural capital for more than a millennium before the dawn of the modern era, shows distinctive characteristics formed in the process of urban modernization. A citizen plaza perfectly fit to a modern city is lying on the east side, but a delayed urban reconstruction in the city center due to a strong conservative self-government awareness, as well as a delayed modernization of tax system, caused disorderly urban sprawl to appear in the suburbs. Thanks to the enactment of urban planning law enacted in 1919 by the government (Ministry of Internal Affairs) and an increasing awareness about the necessity and rationality of urban planning projects, urban renovation took place at a rapid pace. In the meantime, new ways of urban design were sought for and experimented to conserve it as a historical city against the city' quickly changing landscape.

A study on the effect of tax evasion controversy on corporate values in internet news portals through big data analysis (빅데이터 분석을 통한 인터넷 뉴스 포털에서의 탈세 논란이 기업 가치에 미치는 영향 연구)

  • Lee, Sang-Min;Park, Myung-Ho;Kim, Byung-Jun;Park, Dae-Keun
    • Journal of Internet Computing and Services
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    • v.22 no.6
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    • pp.51-57
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    • 2021
  • If a company's actions to save or avoid taxes are judged to be tax evasion rather than legal tax action by the tax authorities, the company will not only pay tax but also non-tax costs such as damage to corporate image and stock price decline due to a series of tax evasion-related news articles. Therefore, this study measures the frequency of occurrence of tax evasion controversial keywords in internet news portal as a factor to measure the severity of the case, and analyzes the effect of the frequency of occurrence on corporate value. In the Korean stock market, we crawl related articles from internet news portal by using keywords that are controversial for tax evasion targeting top companies based on market capitalization, and generate a time series of the frequency of occurrence of keywords about tax evasion by company and analyze the effect of frequency of appearance on book value versus market capitalization. Through panel regression and impulse response analysis, it is analyzed that the frequency of appearance has a negative effect on the market capitalization and the effect gradually decreases until 12 months. This study examines whether the tax evasion issue affects the corporate value of Korean companies and suggests that it is necessary to take these influences into account when entrepreneurs set up tax-planning schemes.