Next Article in Journal
The Role of Green and Traditional Supplier Attributes on Business Performance
Next Article in Special Issue
Sustainability in SMEs: Top Management Teams Behavioral Integration as Source of Innovativeness
Previous Article in Journal
Uncertainty Analysis of a GHG Emission Model Output Using the Block Bootstrap and Monte Carlo Simulation
Article Menu
Issue 9 (September) cover image

Export Article

Open AccessArticle
Sustainability 2017, 9(9), 1523; doi:10.3390/su9091523

Taxpayer’s Perception to Tax Payment in Kind System in Support of SMEs’ Sustainability: Case of the South Korean Government’s Valuation of Unlisted Stocks

1
School of Business, Dongguk University (Seoul), 30, Pildong-ro 1-gil, Jung-gu, 04620 Seoul, Korea
2
Department of Business Administration, Seoul National University of Science and Technology, 232 Kongneung-ro, Nowon-gu, 01811 Seoul, Korea
*
Author to whom correspondence should be addressed.
Received: 4 August 2017 / Revised: 19 August 2017 / Accepted: 24 August 2017 / Published: 26 August 2017
(This article belongs to the Special Issue Sustainability in SMEs)
View Full-Text   |   Download PDF [504 KB, uploaded 26 August 2017]   |  

Abstract

In Korea, unlisted stock shares are accepted as payment for inheritance tax. In the case of insufficient cash, a taxpayer can pay the government with listed or unlisted stocks (hereinafter referred to as “tax payment in kind”). The drawback of this tax payment system is that receiving tax paid with stocks is subject to the valuation of the government and selling the stocks to an open market requires another valuation. The results of these two valuations show considerable differences, and, therefore, the selling price in the open market is very low. This study analyzes how taxpayers recognize the differences in the valuation results of these unlisted stocks and how the differences affect the pricing for repurchasing the stocks from the open market. Results show that high valuation of unlisted stocks in tax payment in kind drives buyers to lower the purchasing price in the open market. This finding implies a problem in the government’s valuation method of unlisted stocks collected as tax. View Full-Text
Keywords: SMEs sustainability; tax practitioner’s advice; unlisted stock; stock valuation; tax payment in kind SMEs sustainability; tax practitioner’s advice; unlisted stock; stock valuation; tax payment in kind
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Kim, K.; Yoon, S. Taxpayer’s Perception to Tax Payment in Kind System in Support of SMEs’ Sustainability: Case of the South Korean Government’s Valuation of Unlisted Stocks. Sustainability 2017, 9, 1523.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top