Abstract

There are different views whether the separate taxation system for income below the standard amount, along with the progressive tax rate system, where the group with higher income than the rest pay more tax, can be seen as the systems that consider the horizontal impartiality, which draws rational distinction in the consideration of different environments. Therefore, the separate taxation system can be utilized as a proper way to elude taxation for the groups with higher income, and its problems have been pointed out for encouraging disparity of income inevitably and for lowering the redistribution function of income. Accordingly, this study intends to analyze the difference of tax specialists in understanding on whether the separate tax system for the income tax below the standard amount corresponds to the horizontal impartiality of taxation. By applying the descriptive statistics, frequency study, analysis of variance(ANOVA) by F investigation, Duncan's multi-scope verification as a post investigation on the F investigation, that were conducted using the data from a survey of tax specialists, the level of understanding on the impartiality of separate taxation of income has been analyzed. The summary of results of the study is as follows. First, the result found the separate taxation system for income from interests or dividends below 40 million won in the aspect of paying tax unfair. The result of a significant difference between the groups with different occupations supports the hypothesis statistically. On the other hand, there was no significant difference between the groups with different levels of income. Second, the result showed the positive recognition to impose tax on the income from interests or dividends below 40 million won by adding up together with the total income. In verifying the difference of understanding among the groups, there was a significant difference between the groups with different occupations, which supports the hypothesis. On the other hand, there was no significant difference between the groups with different levels of income. Third, a blind point has been found that a person with higher income, in the case of separate taxation system on the income from interests or dividends below 40 million won, could in fact, pay lower tax than the possible share. In verifying the difference of understanding among the groups, there was a significant difference between the groups with different occupations, which supports the hypothesis. On the other hand, there was no significant difference between the groups with different levels of income. The results show that the people who took the survey for this study supports the idea that the separate taxation system on income below standard obstructs the impartiality of taxation and also the necessity to make revision on the taxation system to impose tax after adding up to total income. It appears this study holds its significance, first, for presenting the necessity to improve on the impartiality of taxation system for the purpose of attaining fair taxation and strengthening the function of redistribution, and second, for showing the high possibility of the dis- satisfaction toward the unfair taxation system becoming the cause of resistance or elusion to pay tax.

Keywords

• Income Taxation System
• Impartiality on taxation
• Separate Taxation
• Income Tax Rate System
• Income from Interest · Dividends

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