Taxation of Financial Intermediation : Theory and Practice for Emerging Economines

Taxation of Financial Intermediation : Theory and Practice for Emerging Economines

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 capi...

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Bibliographic Details
Main Author:	Honohan, Patrick
Format:	Publication
Language:	English en_US
Published:	Washington, DC: World Bank and Oxford University Press 2013
Subjects:	ACCOUNTING ARBITRAGE ASYMMETRIC INFORMATION BALANCE SHEET BANK RESERVES BANK VALUE BANKING SECTOR BANKING SYSTEM BENCHMARK BORROWING CAPITAL GAINS CAPITAL LOANS CENTRAL BANK CENTRAL BANKS CLOSED ECONOMIES COMMERCIAL BANKS CONSUMPTION TAXES CORPORATE INCOME TAX DEBT DEPOSIT INSURANCE DISINTERMEDIATION DIVIDENDS ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC RENT ELASTICITY EMPIRICAL EVIDENCE EQUILIBRIUM EXPENDITURES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL REGULATION FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEMS FINANCIAL TRANSACTIONS FOREIGN EXCHANGE GDP GOVERNMENT SECURITIES GROSS REVENUE HOUSING HOUSING FINANCE INCOME INCOME TAXES INDEXATION INFLATION INFLATION RATE INTEREST INCOME INTEREST RATES LICENSES LIQUIDITY MINIMUM RESERVE REQUIREMENTS NATIONAL BUDGETS NET MARGIN NOMINAL INTEREST RATES NONTAX REVENUE OPPORTUNITY COST PROFITABILITY PROPERTY OWNERSHIP PROVISIONING PROVISIONS PUBLIC POLICY PURE PROFIT REAL INTEREST RATE REGULATORY POLICY RESERVE REQUIREMENTS RETIREMENT SALES TAXES SIDE EFFECTS STATE ENTERPRISES SUBSIDIARY TAX TAX ADMINISTRATION TAX COLLECTION TAX INCENTIVES TAX RATES TAX REFORM TAX REVENUE TAX SYSTEMS TAXATION TIME DEPOSITS VALUE ADDED WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2003/06/2481636/taxation-financial-intermediation-theory-practice-emerging-economines http://hdl.handle.net/10986/15122

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Summary:	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.