Author(s)

Andreas Loffler, Lutz Kruschwitz

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Universit?t Paderborn, Lehrstuhl für Finanzierung und Investition, Paderborn,Germany.

The opinion is occasionally voiced that investors should avoid paying tax at all costs. In this paper it is being investigated, using a simple portfolio model with taxes, whether avoiding tax really leads to more µ-σ-efficient solutions. It is demonstrated for four different concepts of tax-minimising policy that they are a far cry from an efficient solution.

Decision, Taxes, CAPM, Tax-CAPM

A. Loffler and L. Kruschwitz, "Is it Rational to Minimize Tax Payments?," Modern Economy, Vol. 1 No. 1, 2010, pp. 47-50. doi: 10.4236/me.2010.11004.