Taxation and Integrated Financial Markets: The Challenges of Derivatives and Other Financial Innovations
The past decade has witnessed the explosive growth of a multiplicity of new instruments which have altered the financial landscape. These transactions have highlighted many of the inconsistencies, asymmetries and shortcomings of current tax practices and challenged some basic tax principles. The ensuing uncertainties could over the long term place considerable strain on the tax system by increasing the opportunities for abuse and raising overall compliance costs. At the same time derivatives have provided a better understanding of the operation tax laws and from this standpoint have provided a positive input into policy design. This paper has three objectives: (a) to illustrate some of the weaknesses of the current tax system by focusing on several types of novel transaction; (b) to assess the validity of various types of adjustment proposed to tax code; (c) to draw out the implications of these developments for the ongoing debate over fundamental tax reforms and over source versus residence based taxes. Copyright Kluwer Academic Publishers 1998
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David F. Bradford, 1996. "Fixing Capital Gains: Symmetry, Consistency and Correctness in the Taxation of Financial Instruments," NBER Working Papers 5754, National Bureau of Economic Research, Inc.
- Stiglitz, Joseph E., 1983.
"Some aspects of the taxation of capital gains,"
Journal of Public Economics,
Elsevier, vol. 21(2), pages 257-294, July.
- Huizinga, H.P., 1996.
"The incidence of interest withholding taxes : Evidence from the LDC loan market,"
Other publications TiSEM
194d3a72-1d75-44f8-8a76-9, Tilburg University, School of Economics and Management.
- Huizinga, Harry, 1996. "The incidence of interest withholding taxes: Evidence from the LDC loan market," Journal of Public Economics, Elsevier, vol. 59(3), pages 435-451, March.
- Huizinga, H., 1994. "The Incidence of Interest Withholding Taxes: Evidence from the LCD Loan Market," Papers 9495, Tilburg - Center for Economic Research.
- Huizinga, H.P., 1994. "The incidence of interest withholding taxes : Evidence from the LDC loan markets," Discussion Paper 1994-95, Tilburg University, Center for Economic Research.
- Ross, Stephen A, 1987. "Arbitrage and Martingales with Taxation," Journal of Political Economy, University of Chicago Press, vol. 95(2), pages 371-93, April.
- Auerbach, Alan J, 1991.
"Retrospective Capital Gains Taxation,"
American Economic Review,
American Economic Association, vol. 81(1), pages 167-78, March.
- repec:ner:tilbur:urn:nbn:nl:ui:12-155147 is not listed on IDEAS
- Gordon, Roger H, 1992.
" Can Capital Income Taxes Survive in Open Economies?,"
Journal of Finance,
American Finance Association, vol. 47(3), pages 1159-80, July.
- Roger H. Gordon, 1990. "Can Capital Income Taxes Survive in Open Economies?," NBER Working Papers 3416, National Bureau of Economic Research, Inc.
- Huizinga, H.P., 1994.
"International interest withholding taxation : Prospects for a common European policy,"
Other publications TiSEM
3d92ccee-19e6-4a36-8a00-3, Tilburg University, School of Economics and Management.
- Harry Huizinga, 1994. "International interest withholding taxation: Prospects for a common European policy," International Tax and Public Finance, Springer, vol. 1(3), pages 277-291, October.
- Miller, Merton H., 1986. "Financial Innovation: The Last Twenty Years and the Next," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 21(04), pages 459-471, December.
- Jack M. Mintz, 1992. "Is There a Future for Capital Income Taxation?," OECD Economics Department Working Papers 108, OECD Publishing.
- repec:ner:tilbur:urn:nbn:nl:ui:12-73030 is not listed on IDEAS
- William Vickrey, 1939. "Averaging of Income for Income-Tax Purposes," Journal of Political Economy, University of Chicago Press, vol. 47, pages 379.
When requesting a correction, please mention this item's handle: RePEc:kap:itaxpf:v:5:y:1998:i:4:p:507-534. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.