Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

The Study of Current Problem and Improvement Scheme of Educational Taxation on Financial and Insurance Companies

  • Lee Man Woo Korea University
  • Jeon Hyung Joon Changwon National University
  • Park Ki Bum Korea Institute of Machinery and Materials

Asian Tax Journal Vol. 7 No. 2 (2006), pp. 35-55

Abstract

Education is an area all the nation should be interested in and support, not something a particular corporation or one person should be responsible for. Accordingly, the following reforms are necessary to secure educational finances constantly and stably and to become educational tax with principle. First, to operate in compliance with benefit principle is the most important part of educational tax. As one of objective taxes, educational tax should be operated according to benefit principle, and also the relationship between revenues and burden should be clear. Second, it is possible to tax the educational tax in the way of add on tax like the previous defense tax. It accords with benefit principle and objective tax. Finally, it is required to rearrange tax base and standard of assesment and to reform educational taxes reasonably with enough time and effort in advance because implementing fundamental reform of the current educational taxation system can cause confusions of educational tax.

Keywords

  • educational tax
  • objective tax
  • benefit principle
  • add on tax
  • tax reform

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