• The Journal of Asian Finance, Economics and Business
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• v.6 no.4
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• pp.129-137
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• 2019

Tax can be categorised into direct tax and indirect tax. This paper uses the ordinary least-squares regression method to study the impact of direct and indirect tax on economic growth in Vietnam in the period 2003-2017. Statistical data is collected from the Ministry of Finance of Vietnam. Theoretically, tax generates the state budget revenue and is a tool to regulate the economy. The results of statistical tests show that tax has a positive impact on Vietnam's economic growth. However, the effects of direct tax and indirect tax are different. The indirect tax has a positive influence and promote Vietnam's economic growth, while the impact of the direct tax is invisible. There has not been sufficient evidence to confirm that the indirect tax has a more positive impact than the direct tax. To promote economic growth, Vietnam needs to restructure its tax system towards: (1) Increasing the proportion of indirect tax, reducing the proportion of direct tax in the state budget revenue; (2) Expanding tax bases; (3) Reducing tax rates of corporate income tax and personal income tax; (4) Increasing tax rates of environmental protection tax, natural resources tax, value added tax and excise tax on some types of goods which harm health and environment.

• Korean Business Review
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• v.20 no.1
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• pp.123-143
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• 2007

This paper empirically examines whether the tax effect of indirect tax reductions such as reserves deductible and direct tax reductions such as tax credits and tax reductions is significantly associated with value relevance. That is, direct and indirect tax reductions bear upon an increase in accounting earnings and decrease in cash outflows through reducing tax burdens. The empirical result in this paper shows that firm value is significantly related to the tax effect of reserves for business improvement and other tax reserves, which comprise parts of the book value of equity through tax benefits, but is not significantly related to the tax credits and reserves deductible as necessary expenses that comprise accounting earnings. This paper also analyzes the difference in value relevance between direct tax reductions and indirect tax reductions(That is, Hypothesis No.5). We find that there are no significant differences between direct tax reductions and indirect tax reductions. Because the regressive coefficients of direct tax reductions and indirect tax reductions are not significantly.

• Korean Journal of Social Welfare
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• v.63 no.4
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• pp.277-299
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• 2011

The current study analyzed the tax structure in the welfare states. The appropriate tax structure of universal welfare state should be based on expanding all taxes, rather than choosing between direct and indirect, progressive and regressive, or mobile and immobile tax. The revenue for the universal welfare payment should be raised by levying tax on all people provided that the welfare payment is made available to all people. The analysis led to classification of tax structure into the high tax European model and the low tax English and East Asian model. The high tax European model was further classified into the balance tax model and the high social security model. The low tax English and East Asian model was classified into the low social security model and the high property tax model. Based on the results, the study maintained that the universal welfare states need not only to expand welfare resources but to develop tax system that corresponds to the universal welfare system.

• Management & Information Systems Review
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• v.20
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• pp.137-156
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• 2007

This study had an objective to obtain a result of the economic impacts of lodging industry on the Koran economy. Using the input-output model(I-O model), lodging industry sectoral multipliers were derived from the effects of output, income, employment, value added. indirect tax, and import. According to results of this study, estimated economic impacts of the convention industry were $2,950 million in output, $712 million in income, 92,257persons in employment, $1,590 million in value added, $12 million in indirect tax, and $226 million in import sectors.

• Journal of Industrial Convergence
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• v.1 no.2
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• pp.141-172
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• 2003

To enhance Social Welfare and Public Interests, government has been enforcing the policies that induce private Sector to participate in the Public Service. In general, these policies consist of the direct or indirect supporting systems, including the advantages of taxation applicable to Private Sector that takes part in Public Service. Of the various supporting systems taken by government, the privilege from the taxes is known to the most important supporting system. The representative exemple is the tax beduction of amounts donated to the not-for-profit organizations. That is to say that donations can be deductible from taxable amounts on assessing inheritance tax and gift tax. Generally much higher cumulative tax rates are applied to the laws of inheritance tax and gift tax than the other taxes in order to redistribute the social wealth and to restrain the concentration of the wealth. On the other hand, the special exemption from the taxes can be applied to not-for-profit organization according to the standards of the relevant lows and regulations, because not-for-profit organization usually performs the partial role of government in Public Service. The perpose of this study is to find the systematical support that the not-for-profit organizations can practice Public service more efficiently than government. This study approaches the subject by means of examining current taxation systems of inheritance tax law and gift tax law and developing systematic alternatives that can make inefficient parts in taxation systems more reasonable.

• Management & Information Systems Review
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• v.32 no.4
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• pp.127-153
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• 2013

The trend of China's industry has been changed from manufacturing industry based on cheap labor market to service industries gradually as a whole. The investment of Korean corporations toward Chines service industry is gradually being increased. The importance of Chinese service industry related taxations such as business tax and value-added tax are growing. This study, therefore, examines the changes of investment environment and does the business tax and VAT of growing importance in China. From the point of view that the taxation on services is mainly related to the business tax or VAT, this study, also, examines the changes of present condition of investment and corresponding trends of the Korean corporations, in accordance with the domestic investment environment changes tied to the business tax and the VAT in China. With regard to the business tax and the VAT, this study looks into their features and tax requisition and also makes comparison between them and VAT of Korea. This study examines the problems and situations from the cases of separation, integration and trial integration of the business tax and VAT, and also does the development direction of the above two taxation and the corresponding strategy of Korea and her companies The purpose of this study is to provide information about the changing trends of investment environment and the business tax and VAT and to present corresponding plan for the corporations advancing into China.

• The Korean Journal of Financial Management
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• v.4 no.1
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• pp.45-58
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• 1988

This paper is to examine the relevance of banarptcy Costs (BC) to Capital Structure with three related purposes: whether or not BC are trival,, a proxy methodology for estimating BC, the present value of expected BC vs tax benefits' trade off. For these purposes, the samples includes 19 industrial firms which went bankrupt over period 1970-78 and secondly seven large Companies which went bankrnpt recently in the U.S. The results are quite strong that BC are not trival. In many cases they exceed 20% of the value of the firm measured just prior to bankruptcy. Direct BC are explicit and administrative costs paid by debtor in reorganization/liqaidation process. Indirect BC are essentially defined as unexpected losses and estimated in two way: a regression method and security analyst's forcasts. The present value of expected BC for many of the bankrupt firm is found to exceed the present value of tax benefits from leverage. This implies that firms were overleveraged and that a potentially important ingredient in the discussion of optimum capital structure is indeed the BC factor. Therefore, BC are relevant to the cost of capital structure decision and should he considered seriously.

• Journal of the Korea Safety Management & Science
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• v.16 no.3
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• pp.451-469
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• 2014

The purpose of this study is to implement and develop the integrated Economic Value Added (EVA) and Time-Driven Activity-Based Costing (TDABC) model to seek both improvement of Net Operating Profit Less Adjusted Tax (NOPLAT) and reduction of Capital Charge (CC). Net Operating Profit Less Adjusted Tax (NOPLAT) can be maximized by reducing the indirect cost of an unused resource capacity increased by Cost Capacity Ratio (CCR) of TDABC. On the other hand, Capital Charge (CC) can be minimized by improving the efficiency of Invested Capital (IC) considered by Weighted Average Cost of Capital (WACC) of EVA. In addition, the integrated system of TDABC using Balance Scorecard (BSC) and EVA is developed by linking between the lagging indicators and the three leading indicators. The three leading indicators include customer, internal process and growth and learning perspectives whereas the lagging indicator includes NOPLAT and CC in terms of financial perspective. When the Critical Success Factor (CSF) of BSC is cascading as a cause and an effect relationship, time driver of TDABC and capital driver of EVA can be used efficiently as Key Performance Indicator (KPI) of BSC. For a better understanding of the proposed EVA/TDABC model and BSC/EVA/TDABC model, numerical examples are derived from this paper. From the proposed model, the time driver of TDABC and the capital driver of EVA are known to lessen indirect cost from comprehensive income statement when increasing the efficiency of operating IC from the statement of financial position with unified KPI cascading of aligned BSC CSFs.

• The Journal of the Korea Contents Association
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• v.11 no.10
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• pp.187-196
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• 2011

This study aimed to estimate the economic impact of the '2011 Seoul Motor Show' using a direct survey-based regional input-output(I-O) model. Based on the regional I-O table, Exhibition multipliers were derived with respect to output, income, employment, value-added and indirect tax. Attendees' survey was conducted to estimate per capita expenditure. The results of this study indicated that all attendees of '2011 Seoul Motor Show' generated 53.1 billion Won of output impact, 11.7 billion Won of income impact, 24.1 billion Won of Value-added impact, 2.6 billion Won of tax impact, and 1,030 part-time and full-time jobs throughout direct and indirect effects. Another result of this study was that output multiplier of the exhibition industry was similar with other industries, however, income, employment and value-added multipliers were relatively larger than those of other industries.

• Journal of Technology Innovation
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• v.27 no.1
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• pp.1-43
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• 2019

The significance of SMEs (small and medium-sized enterprises) is gradually highlighted as we have entered the age of "New Normal." The South Korean government support these enterprises to boost economic growth and create more jobs. It also releases numerous policies such as national R&D projects and expanding tax incentive services particularly aiming at promoting dramatic investment in R&D and technological innovation. There is a sharp contrast regarding the efficiency of direct or indirect supports for encouraging R&D investment launched by SMEs depending on researchers. However, there has been little attempt to explore the optimal combination of two policy tools. Amid promoting affiliated governmental departments in charge of SMEs policies and constantly growing R&D investment, it is an appropriate time to discuss the medium and long-term direction for the optimal policy mix of direct and indirect supports. In this study, the author obtained 32 relevant studies published earlier in the domestic journals, explored literatures more systematically, and further conducted a meta-analysis. It is dedicated to summarizing relevant controversies and organizes them empirically beyond merely verifying whether policy support stimulates private R&D investment by SMEs. The meta-analysis showed that it would be effective to support as tax for large enterprises, while subsidiary support for SMEs. However, indirect support needs to be progressively increased as direct support primarily accounts for the entire R&D support for South Korean SMEs.