|Statement||Peter R. Merrill.|
|Series||AEI studies on tax reform|
|Contributions||American Enterprise Institute for Public Policy Research.|
|LC Classifications||HG181 .M475 1997|
|The Physical Object|
|Pagination||vi, 53 p. ;|
|Number of Pages||53|
|LC Control Number||97161344|
Taxation of Financial Services under a VAT Alan J. Auerbach and Roger H. Gordon In simple economic models, it is relatively easy to describe how to impose a value-added tax at a. The taxation of financial services used by households has been a stumbling block in designing consumption taxes. We present a theoretical case for exempting from . Get this from a library! The treatment of financial services under a broad-based consumption tax. [William Jack; Australian National University. Centre for Economic Policy Research.]. Taxation of Financial Services under a VAT Alan J. Auerbach and Roger H. Gordon* In simple economic models, it is relatively easy to describe how to impose a value-added tax at a uniform rate on all consumption goods, and to demonstrate that this tax is equivalent to a proportional labor income tax, plus a tax on existing Size: 36KB.
This paper examines the appropriate taxation of financial services under a broad-based consumption tax. It is assumed that the underlying objective of the consumption tax is to maintain undistorted prices between current and future consumption (i.e. to impose no distortion on savings decisions) and, in a model with uncertainty, between consumption in different states of the world. Must Financial Services be Taxed Under a Consumption Tax? 23 National Tax Journal Vol. LIII, No. 1 Abstract - The taxation of financial services used by households has been a stumbling block in designing consumption taxes. We present a theoretical case for exempting from tax investment ser-vices, loan services, and insurance services. These. TAXATION OF FINANCIAL SERVICES UNDER A VAT 91 2 2 charging for the services. Safe-deposit box rental charges, debt collection charges, and fees for advisory services are taxed in all countries with a VAT. However, the situation is quite different in the cases in which the charge for the value-added takes the form of an implicit charge included. The 35 reports to the congress in Sydney describe national, and European Union, general consumption tax systems in most cases a value-added or goods-and-services tax and the consumption taxation of financial services such as credits, loans and deposits, money, shares and securities, other-than-core financial services, and the supply of Format: Paperback.
FUNDAMENTAL PRINCIPLES OF TAXATION – 29 Chapter 2 relating to the consumption of goods and services, imposed at the time of the In other countries tax and financial accounting are substantially independent, with tax law provisions addressing to a large extent the treatment. The combination of Luxembourg’s status as a center of financial services and e-commerce and the current tax treatment of those services may explain why its VAT revenue ratio is greater than The older VATs, mainly in European Union countries, have narrow tax bases, with many goods or services receiving preferential treatment. Internal Revenue Services (IRS) The timing difference is the term that is extremely used in the financial reporting or taxation purposes. Read full text → Value-added Tax (VAT) A value added tax (VAT) can be explained as a type of consumption tax. From the buyer’s perspective, it is a tax on the purchase price. On the other hand, from a. financial services where value added is difficult to this $1 million would escape taxation under a wage tax. A personal cash flow tax would tax all cash. Consumption taxation 75 under a consumption tax and capital gains are ignored. On the other hand, efforts to achieve distributional goals can add complexity to a consumption tax. For ex-.