In this study, we exploit a policy shock that differentially increased capital gains taxes for housing units with holding period less than 5 years, and document tax avoidance and tax evasion in the residential resale market in China. We show suggestive evidence that after the capital gains tax...

Venture capitalists not only finance but also advise and thereby add value to young innovative firms. The prospects of venture capital backed firms thus depend on joint efforts of entrepreneurs and informed venture capitalists, and are subject to double moral hazard. In financing a portfolio of...

We analyze a multi-period model of capital gains taxation with endogenous prices. Relative to an economy without taxation, a capital gains tax tends to lower prices and increase returns. Abstracting from tax redistribution policies, we find that a taxable investor's welfare falls, a nontaxable...

The Ralph Committee, consisting of three leading Australian businessmen, John Ralph (Chairman), Rick Allert and Bob Joss, was established in 1998 to make recommendations on reforms to the Australian tax system. Relevantly, the Ralph Committee sought to achieve three national taxation objectives:...

This article explores the tax compliance costs — those costs incurred by taxpayers or third parties, such as businesses, in meeting the requirements laid upon them in complying with a given structure and level of tax — that New Zealand could expect to encounter if a capital gains tax (CGT)...

It has long been accepted that taxing consumption, property and labour can be much more efficient than taxing more mobile factors such as capital. As a result, revenue authorities have increasingly built significant parts of their tax systems upon such tax bases, and often tended to downplay the...

This paper studies the interaction between negative gearing and three capital gains tax regimes - the current Australian system, the one that prevailed between 1985 and 1999 and a realisation tax that mimics an accruals tax. We report estimates of the effective rates of income tax for each...

In the current US tax system, capital gains are taxed at a lower rate than ordinary income. What does that mean for the sale of IP and intangible assets? Is it possible to convert ordinary income to capital gain by changing the form of the transaction? This article will address anomalies in the...

Some policymakers think that a reduced rate for capital gains is an unjustified tax preference. However, capital gains are different than ordinary income and have been subject to special low rates since 1922. Nearly every country has reduced tax rates on individual long-term capital gains, with...

This study empirically examines the role of risk sharing between taxable investors and the government on the relation between capital gains taxes and expected returns. Specifically, using an international panel from 26 countries over the period 1990 to 2004, we find evidence that the general...