Cover IMF Working Papers
A Taxon Gross Assets of Enterprises as a Form of Presumptive Taxation
Author: Efraim Sadka and Mr. Vito Tanzi
Series:
IMF Working Papers
Volume/Issue:
Volume 1992: Issue 016
Language:
English
Publication Date:
01 Feb 1992
DOI:
https://doi.org/10.5089/9781451843316.001
ISBN:
9781451843316
ISSN:
1018-5941
Pages:
22
Keywords:
WP; firm's holding; ability to pay; buying firm; daughter company; indexation scheme; purchased firm; Personal income; Income tax systems; Income and capital gains taxes; Presumptive tax; Europe
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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A tax on gross assets has been introduced in some developing countries where several factors (most notably, high inflation) enabled apparently viable enterprises to report losses for income tax purposes. The idea of a tax on the value of assets, rather than on the income that the assets generate, seems to have originated in the 17th century in Milan. It was more recently advocated by Luigi Einaudi and Maurice Allais, but their contributions have remained unknown in the Anglo-Saxon world. The economic implications of such a tax are analyzed in this paper. Special attention is devoted to efficiency and administrative aspects. Practical considerations suggest that the tax on gross assets serves as a minimum income tax rather than as a final tax.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund