ATJ Asian Tax Journal

Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

Problems of General Delegated Legislation in the Range of Tax Exemption based on the Value Added Tax Law

  • kisoo Oh Kimpo College

Asian Tax Journal Vol. 12 No. 3 (2011), pp. 459-483

Abstract

Economic thought has infinite variety and its creation and change are very extreme in modern enhanced economic activity, leading high technology, complexity, and specialization of tax problems. Accordingly, even though we adhere to the principle of no taxation without law on the establishment of tax law, it is impossible to perfectly stipulate all issues on tax by law. So the principle of no taxation without law inevitably approves a delegated legislation of tax law as a necessary evil. But the delegated legislation should not be the general delegated legislation. The tax law is the field that has the most general delegated legislation. As constitutional law established a liability to pay taxes on article 38 and declared “Type and tax rate are decided by law,” on article 59, basic issues such as an object of taxation and a tax rate should be decided by law. The general delegated legislation of tax law is against constitutional law, and the Constitutional Court made many adjudgements of violation of the Constitution. This research studied problems that generally delegate the range of tax exemption of medical and health services, education services, and finance and insurance services among provisions on tax exemption of article 12 of value added tax law to enforcement ordinance and its ways to improve, contributing to fulfill a legalism on tax requirement of the principle of no taxation without law. As a result, it suggested an improvement scheme on establishment of value added tax law of ‘medical and health services, education services, finance and insurance services’ that generally delegates the range of tax exemption based on the value added tax law. This way is to prevent a violation of the constitution of general delegated legislation and to secure legal stability and predictability by establishing basic concept and range of tax exemption by law.

Keywords

  • value added tax
  • tax exemption
  • general delegated legislation

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Asian Tax Journal

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Editor-in-Chief : Prof. Wanyong Kim Editorial Office : Dept. of Finance, Accounting & Taxation, Hanyang Cyber University, 220 Wangsimni-ro, Seongdong-gu, Seoul, Republic of Korea Tel : +82-2-2290-0418 / +82-10-8664-1117 E-mail : taxresearch2@hanmail.net