Investment Property Converted into Business Use—Income Tax and Valuation Method

1967 ◽  
Vol 2 (1) ◽  
pp. 46-66 ◽  
Author(s):  
Y. Neéman
Keyword(s):  
Income Tax ◽  
Capital Gains ◽  
Tax System ◽  
Internal Revenue ◽  
Valuation Method ◽  
Similarities And Differences ◽  
Tax Systems

The courts and the legislature in both Israel and Britain have recently been occupied with the problem of the valuation of investment property upon conversion to business use. The problem involves the whole complex of income tax and capital gains taxation and goes to the root of the income tax system. Different approaches to the basis of valuation in “converted property” cases have been taken by the American Internal Revenue Code, under the British Finance Act and according to the Israel Income Tax Ordinance. The main object of this study is to analyse and compare the similarities and differences of these tax systems and try to draw conclusions which will suggest the lege ferenda to be applied in Israel. I shall first examine the American practice, then deal with the British views and finally consider the approach adopted by the Israel courts.

scholarly journals Opportunities for Simplification in the Personal Income Tax Systems of the Visegrad Countries

2020 ◽  
Vol 65 (4) ◽  
pp. 531-553
Author(s):  
Éva Bonifert Szabóné
Keyword(s):  
Income Tax ◽  
Policy Instruments ◽  
Degree Of Approximation ◽  
Personal Income ◽  
Tax Burden ◽  
Personal Income Tax ◽  
It Use ◽  
Tax System ◽  
Tax Systems ◽  
The Impact

Due to the numerous factors that can influence the impact of the tax system and redistribution, there is no single correct answer to the question of which composition of economic policy instruments needs to be applied to achieve a desired redistributive effect. The general aim of the study is to investigate in relation to the quantifiable parameters of income tax systems, whether the consideration of the aspects of fairness and justice does have an excessively negative effect on the simplicity of tax systems. The study investigates the possibilities of simplifying the personal income tax system’s composition in some Central and Eastern European countries, while tax burden curves of the system remain as constant as possible. To this end, the study sets up a theoretical, simplified tax model, the parameters of which are determined by a computer program, in order to generate tax burden curves corresponding most closely to the curves of the real tax system. Based on the analysis, it can be established that the theoretical system – in some cases with restrictions – provides a good approximation to the tax burden curves of the investigated countries. The chosen simple model has a good degree of approximation to a real system that does not have significant breakpoints in its tax burden curves, nor does it use a taxation method that fundamentally modifies the system (e.g., splitting). Practical examples help to understand that a complex personal income tax system in a given country is not necessarily the only possible solution to achieve a given tax burden curve, the function may be reproduced with a good approximation constructed from simpler basic elements.

scholarly journals Harmonization of income taxation of individuals in the Eurasian economic union countries

2019 ◽  
pp. 120-126
Author(s):  
Yu. D. Shmelev
Keyword(s):  
Income Tax ◽  
The State ◽  
Income Taxation ◽  
Development Trends ◽  
Eurasian Economic Union ◽  
The World ◽  
Similarities And Differences ◽  
Economic Union ◽  
Tax Systems

The development trends and the state of income tax systems in the world and the countries of the Eurasian Economic Union have been analyzed. Their similarities and differences have been revealed. The problem of harmonization of the legislation of income taxation of individuals has been considered. The assessment of justice and efficiency of the existing systems of income taxation in the countries of the Eurasian Economic Union has been carried out. The concept of harmonization has been proposed, which allows not only to unify the laws of the Eurasian Economic Union countries, but also to ensure an increase of the efficiency and fairness of the system of income taxation of individuals.

scholarly journals THE ROLE OF INCOME TAX SYSTEM STRUCTURE IN TAX NON-COMPLIANCE BEHAVIOUR AMONG SMEs IN YEMEN

2021 ◽  
Vol 16 (Number 2) ◽  
pp. 23-49
Author(s):  
Lutfi Hassen Al-Ttaffi ◽  
Hijattulah Abdul-Jabbar ◽  
Saeed Awadh Bin-Nashwan
Keyword(s):  
Income Tax ◽  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
System Structure ◽  
Tax System ◽  
Tax Rate ◽  
Tax Systems ◽  
High Level ◽  
Medium Enterprises ◽  
Compliance Behaviour

Tax is the main source of government revenue. However, a number of countries worldwide are increasingly besieged by challenges regarding compliance levels with the rules of tax systems. Thus, this paper aims to enhance an understanding of tax non-compliance behaviour by investigating the effect of the income tax system structure on Yemeni taxpayers’ behaviour. The study focuses on income tax compliance behaviour of owner-managers of small and medium enterprises (SMEs), as the Yemeni economy relies heavily on this sector. The SME sector represents 99.6 percent of business in Yemen. Based on a quantitative approach using a self-administered survey instrument, a total of 330 valid questionnaires were collected and the feedback provided analyzed. The results demonstrate that SME taxpayers exhibited a high level of tax non-compliance. Furthermore, the multiple regression analysis shows that the tax rate had a positive and significant influence on tax non-compliance behaviour, but the tax penalties rate did not. These results can be especially relevant to policymakers and practitioners of tax systems structures, particularly in a developing country such as Yemen.

scholarly journals Agricultural Tithing and (Flat) Tax Complexity

2006 ◽  
Vol 68 (2) ◽  
Author(s):  
Adam S. Chodorow Chodorow
Keyword(s):  
Income Tax ◽  
Capital Gains ◽  
Consumption Tax ◽  
Design Features ◽  
Tax System ◽  
Current Income ◽  
Tax Preference ◽  
Radical Reform ◽  
Tax Complexity ◽  
The Subject

Tax complexity has been of major concern to legislators and academics almost since the first income tax was enacted in 1913, and scholars have generated a large and varied body of scholarship on the subject. Some scholars have explored the causes and nature of complexity, while others have focused on how best to simplify the current income tax, while keeping its major design features in place. Those interested in more radical reform of the current tax system have seized on the purported complexity of controversial provisions, such as the progressive rate structure and the tax preference for capital gains, to justify the elimination of those features. More recently, consumption tax advocates have claimed that such taxes are inherently less complex than the income tax, and therefore, we should replace the income tax altogether with some form of consumption tax. Indeed, Steve Forbes has repeatedly argued that his preferred form of consumption tax is so straightforward that we can calculate our taxes using a simple postcard and abolish the IRS in the process.

scholarly journals The political economy of capital gains taxation in South Africa - Part II: The public choice of capital gains taxation and public policy

2001 ◽  
Vol 4 (2) ◽  
pp. 234-253
Author(s):  
Zane A. Spindler
Keyword(s):  
Public Finance ◽  
South Africa ◽  
Public Policy ◽  
Public Choice ◽  
Income Tax ◽  
Capital Gains ◽  
The Political ◽  
Capital Gains Tax ◽  
Tax System ◽  
The Public

Public Finance and Public Choice principles are used to analyze the ideological and practical basis for the proposed introduction of a Capital Gains Tax into the income tax system of South Africa. The paper concludes that this is a flawed tax whose time has passed - especially for countries like South Africa.

The Finance Act, 1965 and its Effect of Life Offices and their Policyholders

1967 ◽  
Vol 93 (1) ◽  
pp. 25-77
Author(s):  
E. H. Potter
Keyword(s):  
Income Tax ◽  
Balance Of Payments ◽  
Capital Gains ◽  
Tax System ◽  
Corporation Tax ◽  
The United Kingdom ◽  
Overseas Investment ◽  
A Charge ◽  
A Company ◽  
A Current

The Finance Act, 1965 (which will be referred to in this paper as ‘the Act’) introduced two major changes into the United Kingdom system of taxation: firstly, it introduced a corporation tax applicable to company profits in place of the income tax and profits tax to which those profits were previously subject; and secondly, it imposed a charge to tax on all capital gains, with certain exceptions, whether these gains accrued to a company or to an individual. The objects of these changes and the various associated arrangements were:(1) To make the tax system more equitable by bringing into charge certain capital gains, frequently speculative gains, which had previously escaped tax altogether.(2) To make the tax system more simple in some respects by separating the taxation of companies from the taxation of individuals and by levying corporation tax on a current year basis.(3) To encourage the retention of profits by companies.(4) To improve the country's immediate balance of payments by rendering overseas investment less attractive.

Do high taxes lock-in capital gains? Evidence from a dual income tax system

Public Choice ◽  
2009 ◽  
Vol 145 (1-2) ◽  
pp. 25-38 ◽  
Author(s):  
Sven-Olov Daunfeldt ◽  
Ulrika Praski-Ståhlgren ◽  
Niklas Rudholm
Keyword(s):  
Income Tax ◽  
Capital Gains ◽  
Tax System ◽  
Dual Income Tax ◽  
Dual Income ◽  
Lock In

scholarly journals Missed Opportunities of Simplification Regarding Personal Income Tax Systems in Hungary

2021 ◽  
Vol 66 (3) ◽  
pp. 337-358
Author(s):  
Éva Szabóné Bonifert
Keyword(s):  
Income Tax ◽  
Current System ◽  
Personal Income ◽  
Tax Burden ◽  
Personal Income Tax ◽  
Tax System ◽  
Missed Opportunities ◽  
Distant Future ◽  
Theoretical System ◽  
Tax Systems

The paper investigates – considering also the simplified basic elements of the current system – the possibilities of simplifying the Hungarian personal income tax system’s composition in the previous years, while tax burden curves of the system change as little as possible. Tax burden curves of the theoretical, simplified tax model established for this investigation are fitted to the curves of the real tax system, while the parameters of the theoretical model are determined by a computer program. Since the modern Hungarian income taxation had been introduced, the system has long been subject to a wide variety of changes concerning the basic elements examined in the study. Selecting some of these years of changes, the study analyses the possibilities for simplification in order to ask the question again: whether it is necessary to maintain complex tax systems at all costs, possibly in favour of achieving the most equitable income tax system. The results of the investigation indicate that our simpler theoretical system could have replaced with a good approximation the elements of Hungarian tax systems of previous years with multi-bracket and sometimes complicated tax credit, which even applied more tax benefit elements compared to the theoretical system. On this basis, it may be an important aspect also for the more distant future that in the course of developing personal income tax systems, the sophisticated equity of the systems should be observed through the mathematical spectacles of simplification options.

scholarly journals The political economy of capital gains taxation in South Africa - Part I: The public finance of capital gains taxation

2001 ◽  
Vol 4 (1) ◽  
pp. 1-25
Author(s):  
Zane A. Spindler
Keyword(s):  
Public Finance ◽  
South Africa ◽  
Political Economy ◽  
Public Choice ◽  
Income Tax ◽  
Capital Gains ◽  
The Political ◽  
Capital Gains Tax ◽  
Tax System ◽  
The Public

Public Finance and Public Choice principles are used to analyze the ideological and practical basis for the proposed introduction of a Capital Gains Tax into the income tax system of South Africa. The paper concludes that this is a flawed tax whose time has passed - especially for countries like South Africa.

scholarly journals Assessment of direct taxation instruments

2015 ◽  
Vol 1 (7) ◽  
pp. 147
Author(s):  
Anita Puzule
Keyword(s):  
Income Tax ◽  
Property Tax ◽  
Business Environment ◽  
Tax Rates ◽  
Tax System ◽  
Direct Taxation ◽  
System Improvement ◽  
Tax Systems ◽  
Descriptive Method ◽  
Direct Tax

Creation and development of a favourable business environment in regions is unthinkable without an appropriate tax system. The research study aims to assess the direct tax system in Latvia comparing it with the tax systems in Estonia, Sweden, Finland and Denmark in order to detect common features and differences, as well as to learn the experience that could be adopted in Latvia. The research tasks are to evaluate criteria of the tax policy and to analyse development directions of the direct tax system. The monographic descriptive method, statistical methods in economics, methods of logic and construction are used in the research. Relationships between the elements of the direct tax are explored, and differences between them are determined in the research; the conclusions that could be considered for the tax system improvement in Latvia are made. Evaluation of the direct tax systems in other countries shows that only distributed profit is subject to the corporate income tax in Estonia. The progressive rates are applied to the personal income tax; non-taxable income is higher; as well the tax distribution among budgets differs. In its turn, social security contributions depend on the financing arrangements of the services provided, and the property tax rates are determined by the municipalities, and they are affected by the location of the property and purpose of its use.

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