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Evaluations and Problems of Conversion A Legal Consideration on Professionally Qualified Valuers of a Fair Value according to the Introduction of International Financial Reporting Standards

  • Public Land Law Review
  • Abbr : KPLLR
  • 2014, 65(), pp.385-405
  • Publisher : Korean Public Land Law Association
  • Research Area : Social Science > Law

Chung, Ji Sun 1,  Sung-Man, Yoon 2

1서울시립대학교
2서울과학기술대학교

Accredited

ABSTRACT

In the end of 2013, government amended the Income Tax Act, conversion from deduction method into tax credit method, in order to secure tax revenue and to enhance the equity of tax burden per income size. Major gists are as follow; the additional child eduction of personal exemption deduction is changed into child tax credit, pension savings, education, medical expenses, related insurance premium and donation deduction of special deduction are changed into the tax credit system. The aims of this study are to evaluate and derive problems for the amendment of the Income Tax Act that a comprehensive tax-deductible way is switched to a tax credit scheme. And the problems are as follow;First, conversion into the tax credit system has not been able to present clear criteria. Taxpayer, the actual cost of the work related insurance premium expenses, educational expenses and medical expenses can reduce substantial ability to pay tax, so it is proper tax deduction system. In addition to pension savings deduction as well as the transition to the more complex and detergent, upon receipt of the pension structure is difficult to properly taxed her/him. If this switch pension savings tax credit, small business, small business deductions that are similar in nature purpose will have to be changed. And basically deductible donations tax-deductible in the way conventional manner is converted to a tax credit, this character is similar to the previous ESOP contributions are tax-deductible applies equally to receive and to be. Second, this amendment is opposed to the current policy of encouraging birth. Previously, as a child-related deduction system more basic deduction and deductions had been additional child deduction, This allows taxpayers to burden more the tax than conventional deduction system. Eventually the current child tax credit is opposed to conventional encouraging birth policy. Third, the criteria of the tax credit rate is not clear. Tax credit rate on pension savings and related insurance premium is 12%, and tax credit rate for medical and educational expenses, and donations is 15%. The purpose of Income Tax Act amendment is to reduce tax burden of low-income taxpayers and to increase tax burden of high-income taxpayers. However, tax credit rate is even at the same level. Fourth, the comprehensive income deduction credit system became more complex. a prior comprehensive income tax credit system was very complex, even here. The way of tax deduction or tax credit scheme is added to the complex system. The income derived by the above amendments to the law on these issues the government would have to be extra detergent action.

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