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A New Approach to Taxing Financial Intermediation Services Under a Value Added Tax, Howell Zee

This paper contains a proposal (referred to as the "modified reverse-charging" approach) to tax financial intermediation services under a VAT. At the heart of the proposal is the application of a reverse charge that shifts the collection of the VAT on deposit interest from depositors to banks, in conjunction with the establishment of a franking mechanism managed by banks that effectively transfers the VAT so collected to borrowers as credits against the VAT on their loan interest on a transaction-by-transaction basis. The proposal is fully compatible with an invoice-credit VAT and is capable of delivering the correct theoretical result at minimal administrative costs
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. NATURE OF THE PROBLEM AND ALLEVIATING MEASURES IN PRACTICE""; ""III. A NEW APPROACH TO TAXING FINANCIAL INTERMEDIATION SERVICES""; ""A. Implications of Taxing Deposit and Loan Interest Through Reverse-Charging""; ""B. Modified Reverse-Charging Approach""; ""C. Extension""; ""D. Discussion""; ""IV. CONCLUDING REMARKS""; ""References""
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (19 p.)
Specific Material Designation
Form Of Item

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