ATJ Asian Tax Journal

Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

Research for Financial investment and tax risk management

  • Su Sung Kim Korea Teachers Pension

Asian Tax Journal Vol. 16 No. 4 (2015), pp. 35-61

Abstract

This study research the failure case of J-51 Tax program which tax incentive regarding real estate rental business of USA to examine the necessity of tax risk when invests to international foreign country fund and the importance, investment lesson and implication of tax risk which has been increasing recently by this research. The risk by foreign country investment can be classified to financial risk and non financial risk. The exposed risk can be evaded if the financial instruments are sold against exposure of financial risk but the non financial risk do not occur frequently, then if the non financial risk occur, the loss of investment is big because the width of loss is large. Therefore, the various risk management for financial investment is important and especially, the tax risk management is much more important. Recently, the foreign country financial instruments investments are increasing, so the systematic management of tax risk is necessary as compared with domestic investment. The investment failure case which examined in this study awakens the importance of tax risk management on financial investment. The investors should reinforce the tax risk management to minimize the investment loss and it is necessary to manage the investment risk from investment decision process on investment time to cash collection time. This case is the study which reminds the tax risk on investment one more time when consider this point and there are not many studies regarding tax risk in Korea. Therefore, this study has a meaning that comment the necessity of tax risk management from now on.

Keywords

  • J-51 Tax Program
  • Tax risk management
  • Foreign country fund investment
  • Tax risk
  • Real estate rental regulation law
  • Value of risk
  • Real estate finance
  • Real estate fund

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Asian Tax Journal

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