Is it Rational to Minimize Tax Payments?


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.

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Loffler, A. and Kruschwitz, L. (2010) Is it Rational to Minimize Tax Payments?. Modern Economy, 1, 47-50. doi: 10.4236/me.2010.11004.

Conflicts of Interest

The authors declare no conflicts of interest.


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