양도소득세의 복잡성에 관한 연구

Abstract

A Study on the Complexity of Capital Gains Tax Law

Park, Yong-Hyun

Department of Tax Administration Graduate School of Business Administration Pukyung National University

Abstract

The objectives of the study are ① to factor out three problems, among other factors in the complexity of the capital gains tax law (CGTL, hereafter), including too much non-taxable items and exemption provisions of the system, the complexity of the tax-rate structure of CGTL with heavy tax-rate on non-business lands and multi-housing taxpayers, and frequent changes in capital gains tax policy for last 12 years and ② to suggest some reform measures for the improvement of these three problems, respectively. The followings are the discussions of the three problems in more details and suggestions for the improvement of these three problems, respectively. Firstly, non-taxable items and exemption provisions in the current CGTL is too broad and wide to fairly operate the system. These problems result in unfairness of the system. In order for the tax authority to prevent the complexity in non-taxable items and exemption provisions, tax rule have to reduce the range of non-taxable items and exemption provisions. Secondly, the tax-rate structure of CGTL and heavy tax-rate on non-business lands and multi-housing taxpayers are too complex to operate the system fairly. These problems result in adverse impact on the allocation of resources, income redistribution and assets freezing effects on Korean economy. In order for the tax authority to prevent complex tax-rate problems and heavy-rate problems on certain assets, following measures are needed for the improvement. The complex structure of tax rate in the current CGTL should be simplified and the rules of a heavy capital gain taxes for non-business lands and double penalties who have more than two houses should be abolished (or deleted) from the current CGTL. Thirdly, frequent changes in capital gains tax policy for last 12 years also result in adverse impact on the allocation of resources, income redistribution and assets freezing effects. In order for the tax authority to prevent these adverse impacts on Korean economy and ultimately to improve the current tax system, Korean government have to cut current tax rate to a reasonable level and simplify tax-rate structure.