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On average, net losses realized by direct indexing loss-harvesting strategies taper off within the first few years after their inception. In our historical simulations, they reach a maximum average cumulative level of about 30% of the initially invested capital. In addition, direct indexing strategies exhibit a high dispersion of net loss outcomes. Long-short strategies motivated by factor investing can significantly outperform direct indexing strategies from both a pre-tax and tax perspective. We model two types of long-short factor-based strategies: relaxed-constraint and composite long-short. Both types of strategies, if implemented with a sufficiently high level of leverage and tracking error, can realize a cumulative net capital loss of 100% of the invested capital within a few years and, at the same time, substantially outperform the benchmark index before tax, net of implementation costs. We further show that leverage and tracking error of long-short strategies can be managed dynamically in a highly tax-efficient manner. For example, an investor who becomes less optimistic about the prospects of factor investing can reduce the leverage and tracking error substantially, albeit not all the way to zero, without recognizing net capital gains. We find that a full liquidation of the long and short extensions results in realization of most of the previously deferred gains. [ABSTRACT FROM AUTHOR]

The article discusses the complexities arising from the interaction between tax consolidation and CGT roll-overs for small-to-medium enterprises (SMEs). It highlights that the choice of a particular CGT roll-over can significantly impact the tax cost setting process when forming a tax consolidated group, potentially leading to adverse tax outcomes.

The article delves into recent developments in taxation law, particularly regarding non-arm's length income (NALI) provisions and their application to complex loan arrangements within self-managed superannuation funds (SMSFs). It discusses the specific case of an SMSF's loan arrangements with related entities, highlighting the scrutiny of whether the parties involved were dealing at arm's length and the potential implications of NALI provisions in such scenarios.

The article discusses key federal tax developments in August 2023, with a focus on government initiatives to address tax adviser misconduct, proposed reforms for individual tax residency rules, and technical amendments to improve the operation of tax laws. It mentions a draft legislative instrument for correcting GST errors and a recent Full Federal Court decision related to retiring partner CGT issues.

Many states face challenges in producing accurate forecasts of tax revenue from personal income. Using data from 1996 to 2019, we look at how growth in the various base components of personal income influence the accuracy of a state's forecast of revenue from personal income taxation. We consistently find growth in capital gains, which has the highest year-to-year volatility among personal income components, to be associated with a state underestimating its actual revenues from personal income by at least 2 percentage points. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to investigate the impact of international diversification on the value and operating efficiency of European real estate firms. Design/methodology/approach: The study is conducted using a panel fixed effects regression model to estimate the relationship of international diversification with firm value and operating efficiency. International diversification is mainly measured via the negative of the Herfindahl–Hirschman Index (HHI) using property-level data. Firm value and operating efficiency are proxied by financial ratios observed annually from 2002 to 2021 at the firm level. Findings: The results demonstrate that international diversification has a negative effect on firm value. Additionally, it lowers operating efficiency by weakening a firm's ability to generate operating earnings from its assets. By examining whether the reduction in operating efficiency is due to the rental income channel or the capital gains channel, the authors find strong statistical evidence that international diversification negatively impacts capital gains. International diversification is negatively associated with net gains from property valuations (unrealized capital gains) and net profits from property disposals (realized capital gains). Research limitations/implications: The empirical analysis is limited to Europe. Originality/value: This paper extends the geographical diversification literature. While existing literature focuses on domestic diversification within the United States, this paper explores the effects of international diversification on European real estate firms. To the extent of the authors' knowledge, this is the first paper to examine the impact of geographical diversification on capital gains. [ABSTRACT FROM AUTHOR]

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article focuses on various scenarios involving capital gains tax (CGT) and the main residence exemption, including situations where properties transition from being the family home to investment property, are used as holiday homes, are rented out and later used as a home, and the implications of divorce on jointly acquired properties.

The article focuses on a recently released draft determination that examines the Commissioner's discretion to disregard control under the connected entity rules in the Income Tax Assessment Act 1997, particularly addressing circumstances where control percentages fall between 40 present and 50 present and the concept of control in relation to ownership of a business entity.

The reversal interest rate is the rate at which accommodative monetary policy reverses and becomes contractionary for lending. We theoretically demonstrate its existence in a macroeconomic model featuring imperfectly competitive banks that face financial frictions. When interest rates are cut too low, further monetary stimulus cuts into banks' profit margins, depressing their net worth and curtailing their credit supply. Similarly, when interest rates are low for too long, the persistent drag on bank profitability eventually outweighs banks' initial capital gains, also stifling credit supply. We quantify the importance of this mechanism within a calibrated New Keynesian model. [ABSTRACT FROM AUTHOR]

The article discusses the role of state and local (S&L) governments in providing public services and infrastructure, highlighting their significance in economic recovery. It examines the historical patterns of S&L government spending during recessions and notes a shift towards consistently procyclical spending since the mid-1980s. The change is attributed to the cyclicality of income tax revenues, which have become more important in accounting for recoveries in the S&L public sector.

Context: The research emphasizes the relationship between Mexican sovereign bonds, the sustainable development goals (SDGs) and the impact on the profitability of the investor's portfolio. Purpose: Establish the relationship of Mexican sovereign bonds with the SDGs and Evaluate the impact of Mexican sovereign bonds on the profitability of the investor's portfolio. Problem: Sovereign bonds must present an opportunity for sustainable development and in turn impact the profitability of the investor's portfolio. Methodology: The methodological approach is of a mixed nature, the methodology used is descriptive since a literature review is carried out that allows the fact to be described, it is also quantitative in nature since the discounted flow valuation model is used for the creation of different scenarios. Findings: Mexican sovereign bonds show a key relationship with SDGs and are presented as an alternative for sustainable investor since they contribute to the development of those objectives and, at the same time, can generate greater capital gains or profits in their portfolio. Originality from a transdisciplinary and sustainable innovation point of view: The document shows originality since a review and application is made to the context of national sovereign bonds and their relationship with the (SDGs). Conclusions and limitations: The research question originally posed was answered: What is the relationship of Mexican sovereign bonds with the sustainable development goals (SDGs)? This relationship is inherent to Mexican sovereign bonds. [ABSTRACT FROM AUTHOR]

Studies of digital platforms have critically examined the exploitation and low paid condition of creative labour in cultural industries. This study aims to empirically explore the motivation behind why producers/consumers, key opinion leaders, or wanghong are still devoted to producing and posting videos on the short video platform Douyin, which is the Chinese version of Tik Tok, despite the precarious condition. Leveraging on Bourdieu's concept of cultural capitals and the interchangeability of capitals, this paper argues that Douyin provides the possibility for different wanghong to pursue their own intended capitals, which are not just economic capital, but also social, symbolic, and cultural capital. Under a relatively close environment of China, the flexibility and interchangeability of capital gain have at least become an alternative for these wanghong to explore their creativity and fulfil their desires. [ABSTRACT FROM AUTHOR]

Objective/context: The boom-and-bust of New World slavery in the nineteenth century has always been a major topic of scholarship. In this essay, I suggest that the literature devoted to this theme, the so-called “capitalism and slavery debate,” has made capital invisible as a category of analysis due to its over-reliance on classical and neoclassical economics. As a result, slavery itself has been poorly historicized. My purpose is to put forth an alternative framework to restore the historicity of capital and slavery. Methodology: The article explores critical value theory to conceptualize capital and capitalism in historically meaningful terms. It argues that value creation is never confined to one country. It requires a historically transnational social formation that turns concrete labor into abstract labor and use-values into commodities through the multi-scale operatives of world money and world markets. The history of slavery should be narrated within this broader globalizing setting. Originality: The article’s claim is that the global value relations of industrial capital redetermined spatial relations between town and country, capital and labor, and production and consumption, engendering overlapping layers of a world geography of accumulation that both stimulated and challenged slavery. Conclusions: While most scholars present the relation between slavery and capitalism as constant for the period 1780-1880, I conclude that New World slavery went through two moments of boom-and-bust (c.1780-c.1820 and c.1830-1880), which were formed through, respectively, the global value relations of cotton production and coal-and-iron industrialism. [ABSTRACT FROM AUTHOR]

Objective/Context: During the eighteenth century, officials from different colonial powers attempted to turn the viceroyalty of the New Kingdom of Granada—present-day Colombia, Ecuador, Venezuela, and Panama—into an economically viable territory. The Spanish Crown embraced its most radical jurisdictional reform in centuries to exercise effective state control, extract more revenue, and defend the colonies from foreign incursions. This article explores the particularities of New Granada’s economic governance and argues that colonial officials produced local discourses of political economy to turn unfamiliar spaces into familiar places for economic, political, and military ends. In doing so, producing knowledge about the land and its resources became a key bureaucratic practice that shaped the imagining of a paradoxical territoriality in Northern South America. First, I detail the impact of political economy frameworks on imperial governance and bureaucratic practices. I then showcase how administrative narratives, mapping projects, and fiscal networks reveal the workings of Bourbon economic governance and the search for regional integration. Methodology: This article is built from an analysis of archival documents consisting of a selection of evidence from chorographic texts about New Granada and its provinces produced between 1720 and 1808. Originality: Reflecting on the ways in which the pursuit of knowledge for wealth creation affected the creation of territorialities contributes to uncovering how the imperial political economy was never a top-down imposition. Local officials negotiated it vis-à-vis singular geographical realities and knowledge production practices. Conclusions: Chorographic texts were central devices of imperial reform. The search for wealth production and territorial integration occurred in colonial outposts, not in intellectual treatises in Europe. In forging New Granada as an integrated, potentially rich place, bureaucrats’ experience of moving across the territory and inscribing the landscape on paper shaped perceptions of cohesion and difference, economic dependence, and regional fragmentation. [ABSTRACT FROM AUTHOR]

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Prior studies of the relevance of long‐term capital gains for stock prices rely on the evidence from the 1997 tax cut in the United States. The key component of the tax‐sensitive ownership in these studies is individual ownership; its average is reported to be as high as 66.7%. The sharp increase in institutional ownership over the last two decades to more than 80% and the concomitant decline in individual ownership raises the question of whether taxes on long‐term capital gains are still relevant for stock prices. We examine stock price responses to the 2018 increase in the long‐term capital gains tax rate in India, a market where individual stock ownership is only 18.5%. Overall, the evidence provides strong support for the continued relevance of long‐term capital gains taxes for stock prices despite individual investors accounting for only a small portion of the stock ownership. [ABSTRACT FROM AUTHOR]

We examine the effect of staggered changes in the state-level capital gains tax on venture capital (VC)-backed start-ups and show that an increase in the tax rate of VC firms reduces the quantity and quality of patents by the start-ups. The results are consistent with a reduction in VC firms' incentives to provide effort: increases in the capital gains tax for VC firms lead to incrementally lower innovation exchanges between start-ups in the VC firm's portfolio. VC firms also decrease the level of investment in start-ups and the size of their portfolio as well as increase the number of start-ups that they write off. [ABSTRACT FROM AUTHOR]

Copyright of Die Unternehmensbesteuerung (Ubg) is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In this article, we propose two asymmetry measures for stock returns. Unlike the popular skewness measure, our measures are based on the distribution function of the data rather than just the third central moment. We present empirical evidence that the greater upside asymmetries calculated using our new measures imply lower average returns in the cross section of stocks. In contrast, when using the skewness measure, the relationship between asymmetry and returns is inconclusive. [ABSTRACT FROM AUTHOR]

We develop a systemic, information-theoretic model of competitive capital-market functioning that can account for the observed statistical regularities in cross-sectional distributions of the logarithm of Tobin's q for US non-financial corporations since 1962. The model considers capital markets as a self-organizing system driven by competitive interactions among investors and corporate managers. The persistent pattern of organization we observe in those distributions is primarily defined by the efforts of corporate managers to appropriate arbitrage capital gains defined by heterogeneity across individual measures of the logarithm of Tobin's q. Competition ensures the structures of security prices shaped by those efforts reflect an aggregate tradeoff between the gross returns and costs they pose to corporate managers. The distributions are also influenced by the endogenous, competitive formation of the opportunity cost of capital corporations face, which is conditioned by what investors come to expect to be a typical or general expected rate of return on assets across all corporations. In addition to offering an economic account of what we observe, the resulting framework defines new conceptualizations and aggregate measures of the informational and allocative performance of capital markets. Those suggest the performance of US capital markets has deteriorated since the 1980s. [ABSTRACT FROM AUTHOR]

The article examines the effect of the structure of business assets on the operation of small business capital gains tax (CGT) concessions (SBC) following the death of a taxpayer under the Income Tax Assessment Act 1997 in Australia. Topics discussed include special rules that allow a legal representative, beneficiary or trustee to access SBCs, ability of company to access 15-year tax exemption and extract exempt amount tax-free, and tax exemption of assets owned by discretionary trust.

The article provides information on the early-stage innovation company (ESIC) scheme for Australia start-ups. Topics discussed include eligibility requirements for companies to qualify for ESIC tax incentives, early stage-test, 100-point innovation test and principles-based innovation test that a company must meet to quality as an ESIC, eligibility requirements for investors and shareholders to qualify as an ESIC, and private ruling for ESIC eligibility.

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Zeitschrift für Stiftungswesen is the property of Verlag Oesterreich GmbH and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Over the past 25 years, as access to pensions has declined and longevity has increased, people have needed to bear increasing responsibility for their financial well-being. Fortunately, wealth management has become democratized in that time, bringing to a greater number of people the techniques that once were available only to institutions and the very wealthy. Alpha, the value added relative to an appropriate risk-adjusted benchmark, has been shrinking for a variety of reasons. However, factor-based investing has grown, offering a convenient way to access the premiums once assigned to alpha. Tax-aware mutual funds have become more common, while the rise of exchange-traded funds allows investors to defer capital gains. Continuing advances in efficiency have enabled separately managed accounts to be offered for lower assets and at lower costs. The appropriate vehicle depends on the specifics of the investor, the characteristics of the strategy, and the type of account where it is held. Wealth management should continue to evolve to meet the needs of investment professionals and those they serve. [ABSTRACT FROM AUTHOR]

Copyright of Bitácora Urbano/Territorial is the property of Bitacora Urbano/Territorial and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Estudios Demográficos y Urbanos is the property of El Colegio de Mexico AC and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Revista Técnica Tributaria is the property of Asociacion Espanola de Asesores Fiscales and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Revista Técnica Tributaria is the property of Asociacion Espanola de Asesores Fiscales and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Revista Técnica Tributaria is the property of Asociacion Espanola de Asesores Fiscales and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The 50% CGT discount is a sizeable tax preference, introduced in 1999-2000, which has been the cause of lost tax revenue, and has compromised the important tax system design principles of horizontal equity and vertical equity. In this article, the 2019-20 2% individual taxpayer sample fifile and the aggregate taxpayer data from Taxation Statistics are analysed to gain some insights into the characteristics of taxpayers with capital gains. The data mining technique of cluster analysis is used to group similar taxpayers together based on selected tax return fifields. The analysis confifirms that the 50% CGT discount disproportionately benefifits a very small group of high income taxpayers with relatively large levels of capital gains. The abolition or reduction of the 50% CGT discount would improve the overall integrity of the tax system, as well as horizontal and vertical equity. The benefifits to the overall tax system of this reform would far outweigh any disadvantages that may apply to the small proportion of taxpayers who realise capital gains. [ABSTRACT FROM AUTHOR]

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article considers a widely noted decision of the Supreme Court of Washington, Quinn v. Washington, concluding that a state capital gains tax enacted in 2021 is not subject to the stringent limitations in the state constitution applicable to property taxes. That result was a surprise to many in that Washington courts for nearly a century had treated income taxes as property taxes for this purpose, and what is a tax on realized capital gains other than an income tax? This article sets out the constitutional requirements, explains the taxing statute, and critiques the Court's decision. [ABSTRACT FROM AUTHOR]

The article discusses some of the issues that may cause some concessional tax provisions to be inapplicable. It mentions that tax advisers must comprehend a client's whole group of entities to determine whether concessional tax provisions they are advising are available to the clients. All entities and their advisers must come together to determine the connected entities and if there is a need to restructure for the future with regard to the integrity and anti-avoidance provisions.