• Journal of Digital Convergence
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• v.15 no.11
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• pp.221-229
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• 2017

The purpose of this study is to find out ways to enhance corporate value by using more efficient use of non-reflux Income which is commonly considered in existing corporate income tax refund and newly introduced investment and mutual aid promotion tax. Specifically, we analyzed the effect of income tax return income and income tax return on wages and fixed - asset investments, which are commonly considered in the two tax systems, on firm value. As a result of the analysis, it was confirmed that short-term internal reserves and income reflux activities had a negative impact on firm value, and long-term internal reserves and income reflux return had positive effects on firm value. It is recommended not to formulate uniform criteria such as the ratio of income refund activity to the contents of tax, but to apply the tax refund to the internal taxation system and the taxable income source.

• Environmental and Resource Economics Review
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• v.19 no.1
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• pp.45-80
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• 2010

A computable general equilibrium model has been used to analyze the likelihood of double-dividend effect in Korean economy. Revenue neutral introduction of carbon tax through the reduction in payroll tax and corporate income tax had been experimented in this regard. Double-dividend measured by income shows the existence of weak double-dividend in both cases, while double-dividend measured by consumption level could not be found in case of carbon tax with corporate income tax reduction. A notable result is in the employment measured double-dividend effect as the sizable strong double-dividend effect were found in the case of carbon tax with payroll tax reduction.

• The Journal of the Convergence on Culture Technology
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• v.6 no.1
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• pp.367-380
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• 2020

Recently, Korea's economy is facing a difficult economic situation due to sluggish domestic demand, low corporate investment and a cliff in youth employment. In order to overcome this problem and turn the economy into a virtuous circle, the government has introduced and implemented various economic policies. In this study, the effects of the corporate accumulated earnings tax system included in the 2014 tax code revision were to be verified. The validity of the business income was verified and analyzed using the financial data of the entity as to whether the income of the entity was being circulated to household income. First, validating the validity of whether the income tax on non-current income affects the level of an entity's investment, the results showed significant negative effects at a significant level of 5 per cent. Second, the analysis of whether the return tax on corporate income is affecting management decisions that increase the level of dividends for an entity has identified a metaphorical positive relationship. Third, it was confirmed that the income tax on uncurrency income does not have a significant effect on the increase in wages for workers. The result is presumed to be the main reason for the increased uncertainty in the economy and business environment.

• Journal of Environmental Policy
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• v.12 no.3
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• pp.123-159
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• 2013

We use a multi-regional dynamic computable general equilibrium model to explain an economic effect of $CO_2$ tax on the national and regional economy of Korea. First, we compare two $CO_2$ taxes: a region-specific $CO_2$ tax and a uniform $CO_2$ tax. In the region-specific tax, the $CO_2$ tax rate in the capital area and the south-eastern region is much greater than those in other regions. GDP loss resulting from the region-specific tax is bigger than that in the uniform tax. Second, we consider three options for tax recycling: consumption tax recycling, labor-income tax recycling, and corporate-income tax recycling. The corporate-income tax recycling has the least GDP-loss effect over the three options. These results support that it is more efficient to use a uniform $CO_2$ tax rate than a region-specific $CO_2$ tax rate and that the corporate-income tax recycling is more desirable in a sense of efficiency than the consumption and labor-income tax recycling options.

• Management & Information Systems Review
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• v.35 no.2
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• pp.83-97
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• 2016

The purpose of this study is to evaluate our system and consider how the tax rules on corporate reorganization and asset adjustment account can be improved. The scope of this study includes the Korean tax rules on corporate reorganizations, as well as key tax benefits provided by the Special Tax Treatment Control Act. In case of Korea, The relevant regulations and system of taxation respecting the merger has been made the rapid progress in several respects in this situation, there are capable of improvement. This paper suggests improve some problems on tax avoidance abusing incomplete tax law. First, the asset adjustment account is the difficulty that it needs to follow-up during this period of time, as well as the complexity of the accounting and tax adjustments on the practice. If it is permitted to succeed asset-liability as market value, the complexity of asset adjustment account in corporate tax accounting also disappear. Second, in case that controlling shareholders possess more than 20% of merged entity, they could not get the tax deferral until after the time of two years has elapsed. It needs to further alleviate the merged entity ratio than the present level. Finally, after the merger it will be to strengthen the surveillance provisions of five years from the current two years. In addition, continuity of shareholder's requirements and business requirements, it is also necessary to strengthen the requirements of the follow-up provided by a separate regulation.

• Journal of Korea Trade
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• v.25 no.5
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• pp.74-92
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• 2021

Purpose - Utilizing a large sample of Korean firms, this study examines international diversification impacts on corporate tax avoidance and whether firms affiliated with large business groups (known in Korean as "chaebol") reinforce the relationship between international diversification and tax avoidance. Design/methodology - This paper hypothesizes that 1) international diversification is likely to increase tax avoidance, 2) the positive effect of international diversification on tax avoidance is likely to be more pronounced for chaebol firms. We examine the hypotheses by using Korean firms listed in the Korean stock market between 2011 and 2016. We employ the number of foreign subsidiaries and the entropy index as proxies for international diversification and CASH ETR and GAAP ETR as proxies for tax avoidance. Findings - Our findings are summarized as follows. First, we have found that as firms are more internationally diversified, tax avoidance increases. It means that international diversification can be employed as a method of reducing the tax burden. Second, firms affiliated with chaebol are strengthened by the positive relation between international diversification and tax avoidance. It is interpreted that chaebol firms have more effective opportunities to reduce taxes than other firms. When entering foreign markets, they can share experience and resources to decrease taxation within the large business group. Originality/value - This study provides empirical evidence regarding the tax effect of international diversification. Unlike prior studies, international diversification is positively related to tax avoidance in Korea. In addition, we present additional evidence on the chaebol effects of international diversification on tax avoidance, in which they have an advantage to reduce taxes using transfer pricing through related party transactions, income shifting to low tax rate countries, and establishing subsidiaries in tax havens.

• Agribusiness and Information Management
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• v.2 no.1
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• pp.77-85
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• 2010

Agricultural corporations have been introduced to increase the productivity of farming via entrepreneurial farm management. There are two main subgroups of agricultural corporations. One is composed of farming association corporations and the other consists of agricultural corporation companies. Major tax incentives for agricultural corporations are as follows: 1. Exemption of corporate income tax. 2. Exemption of capital gains tax for farmland investment. 3. Reduction and exemption of dividend income tax for investors.

• Journal of Convergence Society for SMB
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• v.3 no.2
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• pp.1-8
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• 2013

This study examine the relation between small and medium firm's stability and tax avoidance. We use some financial data of small and medium IT firms in KOSDAQ during 2001 to 2009. Following previous research(Desai and Dhamapala 2006), we estimate corporate tax avoidance. And we use quick ratio and current ratio as a short-term stability and equity ratio as a long-term stability. Empirical results follows as. First, It was not significant statistically between short-term stability and corporate tax avoidance. Second, it was significant statistically between the long-term stability and corporate. As corporate tax avoidance increases, the long-term stability(equity ratio) was low. Our analysis provides the empirical evidence between long-term stability and tax avoidance. It offers implications of corporate tax avoidance to small and medium IT firms in KOSDAQ. But this results is difficult generalization because of sample limits.

• Journal of Industrial Convergence
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• v.2 no.1
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• pp.23-46
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• 2004

Tax exhaustion effect hypothesis says that firms with low expected marginal tax rates on their interest deductions employ less debt in their capital structure. We use logit analysis to study how financing decision is related to tax after controlling non tax effects. We treat non debt tax shields as proxy of marginal corporate tax rates which affect the probability of using the deductibility of debt tax shields and empirically test the tax effect on financing decision in Korea. In conclusion, we provide evidence that debt financing is positively related to tax in the former sub-period. This results partially support for tax exhaustion effect hypothesis and low tax rate firms have lower debt levels than high tax rate firms.

• 대한예방의학회:학술대회논문집
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• 1998.10b
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• pp.210-211
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• 1998