Publication: Taxation of Financial Intermediation : Theory and Practice for Emerging Economines
Date
2003
ISSN
Published
2003
Author(s)
Honohan, Patrick
Abstract
This volume examines the possibilities
and pitfalls to successful financial sector tax reform from
theoretical, empirical and practical perspectives. It
explores the possibilities and limitations of "big
ideas" such as removal of all capital income taxation,
the application of VAT to financial services or heavy
reliance on financial transactions taxes. The risks of
attempting to use financial sector taxes as corrective
instruments are stressed. Two defensive criteria are
advanced as key: making the financial tax system as
arbitrage- and inflation-proof as is practicable. Each
commissioned essay develops a distinct aspect of the area.
Theoretical chapters model the impact of taxes on
intermediaries, the design of optimal tax schemes, the role
of imperfect information and the relationship with saving.
Current practice in the industrial world and case studies of
distorted national systems provide an empirical
underpinning. Finally, experience with several of the main
practical issues is discussed in chapters ranging from the
income tax treatment of intermediary loan-loss reserves, the
VAT, financial transactions taxes, deposit insurance and
inflation. Contributors are distinguished academics and practitioners.
Citation
“Honohan, Patrick. 2003. Taxation of Financial Intermediation : Theory and Practice for Emerging Economines. © Washington, DC: World Bank and Oxford University Press. http://openknowledge.worldbank.org/entities/publication/21eeef56-5cde-5760-aeae-328531296b85 License: CC BY 3.0 IGO.”