• Journal of Convergence for Information Technology
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• v.7 no.2
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• pp.137-142
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• 2017

The purpose of this study tried theoretical review on the current Transfer Income Tax system, and review on current Korean Transfer Income Tax system, to derive the inherent problems in Korean Transfer Income Tax system. This study presents the improving measures thereto.The transfer income earned by any individual person is taxed as the Transfer Income Tax pursuant to the Income Tax Act, and the transfer income earned by any legal person is taxed as the transfer income on transfer gain on land etc, pursuant to the Corporate Tax Act. In case of the Transfer Income Taxes earned by individual persons, land and buildings comprise most of the taxable items of the Transfer Income Tax. This study limits the scope of study to the Transfer Income Tax on land and building as the major taxable item, rather than all the Transfer Income Tax taxed to individual taxpayers. The outcomes of this are expected to rationly improvement the real estate taxation in accordance with the principle of tax law.

• KDI Journal of Economic Policy
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• v.13 no.4
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• pp.59-90
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• 1991

The purpose of this paper is to determine whether the rate schedule of the Korean income tax system embodies the theoretically desirable distribution of the tax burden by income classes. The paper follows the approach of Young (1990) who has estimated the utility function and calculated the magnitude of sacrifice, i.e., the tax burden. The main point of the study is to estimate the utility function. The estimation results may differ if different data sets are used. Therefore, this paper employs the effective as well as the nominal tax rate schedule. The findings derived in this paper are 1) that the effective rate schedule is more appropriate in estimating the utility function; 2) that the middle class has born the relatively heavier burden over time; 3) that the current income tax credit scheme curtails the tax burden on the middle class while intensifying the tax burden of the lower and upper income classes; 4) that reducing the amount of deduction moves the distribution of tax burdens by income classes closer to the theoretically desirable model; 5) that the rate schedule of the Korean income tax system, particularly in 1991, did not conform to the desired model as did the tax systems of developed countries such as the United States, Italy, Japan, and Germany.

• 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.

• Management & Information Systems Review
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• v.32 no.4
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• pp.127-153
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• 2013

The trend of China's industry has been changed from manufacturing industry based on cheap labor market to service industries gradually as a whole. The investment of Korean corporations toward Chines service industry is gradually being increased. The importance of Chinese service industry related taxations such as business tax and value-added tax are growing. This study, therefore, examines the changes of investment environment and does the business tax and VAT of growing importance in China. From the point of view that the taxation on services is mainly related to the business tax or VAT, this study, also, examines the changes of present condition of investment and corresponding trends of the Korean corporations, in accordance with the domestic investment environment changes tied to the business tax and the VAT in China. With regard to the business tax and the VAT, this study looks into their features and tax requisition and also makes comparison between them and VAT of Korea. This study examines the problems and situations from the cases of separation, integration and trial integration of the business tax and VAT, and also does the development direction of the above two taxation and the corresponding strategy of Korea and her companies The purpose of this study is to provide information about the changing trends of investment environment and the business tax and VAT and to present corresponding plan for the corporations advancing into China.

• The Journal of the Korea Contents Association
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• v.16 no.6
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• pp.717-725
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• 2016

The purpose of this research is to find the effect of the user's satisfaction according to the quality factor of the National Tax Service tax information system on the business performance of the tax officials. In this research, the quality factor of tax information system was divided into information quality, system quality, and service quality and the importance of the user's satisfaction and business performance was suggested. As the result of analysis, the suggested model showed acceptable data suitability and all of the suggested 4 hypotheses had an statistically meaningful effect. Accordingly, it could be identified that the quality factor of the tax information system had a positive effect on user's satisfaction when the tax officials conduct taxation business and that the tax officials with high satisfaction in using the tax information system showed greater business performance.

• Journal for History of Mathematics
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• v.28 no.2
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• pp.65-72
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• 2015

The Joseon dynasty (1392-1910) is basically an agricultural country and therefore, the main source of her national revenue is the farmland tax. Thus the farmland tax system becomes the most important state affair. The 4th king Sejong establishes an office for a new law of the tax in 1443 and adopts the farmland tax system in 1444 which is legalized in Gyeongguk Daejeon (1469), the complete code of law of the dynasty. The law was amended in the 19th king Sukjong era. Jo Tae-gu mentioned the new system in his book Juseo Gwan-gyeon (1718) which is also included in Sok Daejeon (1744). Investigating the mathematical structures of the two systems, we show that the systems involve various aspects of mathematics and that the systems are the most precise applications of mathematics in the Joseon dynasty.

• KDI Journal of Economic Policy
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• v.14 no.4
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• pp.51-62
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• 1992

The purpose of this paper is to estimate the ratio of under-reported business income and related tax to that which is actually reported. The business income and tax are vulnerable to being under-reported. Information about the business income and thus income tax is private information. Without information costs, the tax agency cannot collect all the information about the business income and income tax. In Korea there are more than 600,000 proprietors. Therefore, the costs to investigate the accuracy of the taxpayes' reports are substantial. The tax agency sets a level over which proprietors should report income ratio to total sales, which induces the under-report. To estimate the ratio of under-reported tax, the expenditure method is employed. By this method, the under-reported income can be easily presumed based on expenditures since expenditures are closely related to income. First, the consumption function is estimated by using cross-section data of 1986-89. Generally, the estimation results show the expected sign of the coefficients of the explanatory variables such as income, wealth, and family size. Second, the extent of under-reported business income and related tax is estimated by using the estimation results. The estimated ratios of under-reported tax and income to the actual tax and income fall in the range of 13~39% and 8~25% respectively. This estimation confirms the increasing tendency of the tax detection ratio in previous studies. However, it should be noted that this study is not based on data of the tax report but those of the urban household survey. Therefore, there still remains the possibility that the ratio of under-reported tax could be underestimated.

• East Asian Economic Review
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• v.25 no.4
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• pp.361-401
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• 2021

This paper sets up a two agent small open economy with monopolistically competitive firms and catching up with the Joneses to investigate the labor and capital Laffer curve, taking into account aging population along the line of Auray et al. (2016), Galí and Monacelli (2005), and Trabandt and Uhlig (2011). The paper finds that the higher the market power of firms is, the larger the consumption inequality between asset holders and non-asset holders is in the economy with aging population. It also finds that there is room for government to increase the tax revenue by raising tax rates under the economy with higher markup, as households will work more hours to compensate for their loss of labor income to tax hikes. The expected maximum tax revenue is likely to shrink with progressive taxations, since non-asset holders with additional dividend income work less and consume more. The paper finds that the fiscal multiplier decreases with the degree of progressive redistribution.

• Asia-Pacific Journal of Business
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• v.14 no.4
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• pp.401-412
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• 2023

Purpose - The purpose of this study is to analyze cases and suggest implications regarding the exclusion of the agreement tax rate according to the processing process standards of the FTA rules of origin. Design/methodology/approach - In this study, cases in which export and import companies were excluded from applying the agreed tax rate due to the application of processing operation standards after the application of the FTA were analyzed, focusing on the Tax Tribunal precedents, and a literature study was conducted. Findings - The results of this study analyzed through cases of appeal and verification of exclusion from application of the agreement are as follows. Research implications or Originality - Research on FTA cases is active, but this study is differentiated in that it focuses on analyzing cases of exclusion from application of negotiated tax rates based on meeting the processing process standards applied to fields such as textiles and chemicals in FTA.

• Asia-Pacific Journal of Business
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• v.14 no.4
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• pp.191-204
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• 2023

Purpose - The purpose of this study was to analyse the relationship between R&D tax support policy and firm innovation activity using data on firms engaged in 12 national strategic technology sectors. Design/methodology/approach - This study collected survey data from 664 companies engaged in national strategic technologies. The data were then analysed using the Propensity Score Matching (PSM) analysis. Findings - First, corporate R&D tax support had a statistically significant positive (+) relationship with firm innovation performance. Second, there was a statistically significant positive (+) relationship with incremental innovation, but there was no statistical significance with radical innovation. Third, there was a statistically significant positive (+) relationship with the firm's first innovation, but there was no statistical significance with the world's first innovation. Fourth, there was a statistically significant positive (+) relationship with the number of R&D projects of a firm. Finally, there was a statistically significant positive (+) relationship with a firm's open innovation. Research implications or Originality - First, in terms of policy effectiveness, the government needs to consider promoting R&D tax support policies in areas where R&D competition is fierce. For private companies engaged in the 12 national strategic technology fields, the R&D tax support policy is working in the direction of promoting corporate innovation activities, and this positive policy effect is likely to be effective in areas where R&D competition is fierce. Second, if the government wants to improve the quality of corporate innovation activities through R&D tax support policies, it needs to provide incentives higher than the current level.